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Research Alert: CFRA Keeps Buy Opinion On Shares Of Cincinnati Financial Corporation
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Research Alert: CFRA Keeps Buy Opinion On Shares Of Cincinnati Financial Corporation
May 26, 2025 12:12 AM

08:25 AM EDT, 05/02/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We trimmed our 12-month target price by $2 to $160, valuing CINF shares at 19.4x our 2026 operating EPS estimate of $8.25 (raised by $0.25), versus its one-year average forward multiple of 21.7x and a peer average of 13x. We cut our 2025 EPS estimate by $1.00 to $5.35, mainly due to the Q1 operating loss of $0.24 (versus EPS of $1.72), on $356M of catastrophe losses, mostly California wildfire claims, lagging our $0.94 EPS estimate but topping the $0.61 a share consensus loss estimate. Its top-line growth trends remained intact, with premiums up by 13% and investment income up 11%. We applaud the 11% rise in net written premiums, a metric that is superior to most peers. While catastrophe losses took their toll on underwriting results, evidenced by the Q1 combined ratio of 113.3% (versus 93.6%), the underlying combined ratio improved to 90.5% from 91.1%. We think above-peer top-line growth and improved underlying claim trends will support the shares' premium valuation to peers.

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