Zacks Investment Research downgraded shares of Chubb (NYSE:CB) from a hold rating to a sell rating in a research note issued to investors on Wednesday morning.
According to Zacks, “Shares of Chubb have underperformed the industry in a year’s time. Exposure to cat loss remains a concern as it induces volatility in underwriting profitability. Also, mounting expenses weigh on margin expansion. Nonetheless, Chubb benefits from a suite of compelling products as well as services. Its inorganic growth story is impressive, helping it achieve a higher long-term ROE. Increased scales, efficiencies and a solid balance sheet will lend Chubb a competitive edge. It estimates solid growth in Overseas General operations, which include both commercial and consumer lines. A strong capital position aids Chubb to boost shareholder value and invest in strategic initiatives for driving growth. The company is estimated to achieve annual run-rate integration-related savings of $875 million by 2018 end.”
A number of other analysts have also weighed in on the stock. Citigroup reduced their price objective on shares of Chubb from $150.00 to $145.00 and set a buy rating…
