Hanover Insurance gains after BMO upgrades rating to 'outperform'

Hanover Insurance group

31/08/2023 15:32

** Shares of Hanover Insurance Group  THG.N  rise ~1.4% to
$107.47 after BMO Capital Markets upgrades to "outperform" from
"market perform" 
    ** Brokerage also raises PT on the stock to $126, implying a
~19% upside to last close 
    ** BMO says after a string of disappointing quarters, "too
much" bad news is priced into the property and casualty
insurer's valuation 
    ** THG is likely to follow the playbook that peers have
taken in the past after experiencing poor weather results, which
includes raising deductibles and offering more "depreciated
value" roof-replacement coverage - BMO 
    ** "Overall top-line growth is unlikely to slow given how
inflationary the personal auto and home marketplace remains,"
says brokerage 
    ** Three of seven brokerages rate the stock "buy" or higher
and four "hold"; their median PT is $126 - Refinitiv 
    ** Including session's move, stock down ~20.5% YTD 

 (Reporting by Manya Saini in Bengaluru)
 ((Manya.Saini@thomsonreuters.com))