Truist cuts PT for ProAssurance, sees difficulty in braving industry headwinds
13/05/2022 13:31
** Brokerage firm Truist Securities cuts target price for
property and casualty insurer PRA.N to $24 from $27
** New PT marks an 11% upside to stock's last close vs a 25%
upside for previous PT
** Truist says though co is a "very high quality operator",
it will be difficult for it to overcome industry headwinds
including interest rate hikes, which have led to lesser returns
from investment incomes
** Because of these factors, there is a limited chance of a
turnaround in PRA's financial performance, brokerage adds
** In its Q1 results reported earlier this week, PRA
reported profit that missed estimates for the first time in six
quarters
** Other insurers have also taken a hit to their earnings in
the first qtr, with higher interest rates eating into their
investment income
** YTD, PRA shares have lost 14.6%
(Reporting by Niket Nishant in Bengaluru)
((Niket.Nishant@thomsonreuters.com;))