First American Financial hits over two-year high after KBW raises PT

First American Financial

04/09/2024 17:41

** Shares of title insurance and settlement services
provider First American Financial  FAF.N  rise as much as 3.7%,
hitting their highest since March 2022; last up 2.8% at $65.49
    ** KBW raises stock's PT to $72 from $66, which represents a
13% upside to the stock's last close 
    ** Brokerage says lower interest rates will lead to higher
volumes for title insurers in the next two years
    ** Lower rates are likely to result in an uptick in
refinancing and commercial real estate activity 
    ** The real opportunity for title insurers lies in the
potential increase in purchase volumes, considering the higher
fees associated with residential purchase transactions -
brokerage
    ** FAF remains the top pick among title insurers - KBW 
    ** Four of 7 brokerages rate stock "buy" or higher, three
"hold"; median PT is $68 - LSEG
    ** As of last close, FAF shares were down 1.1% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))