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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
Aug 4, 2025 12:08 AM

02:45 AM EDT, 08/04/2025 (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 raise our 12-month target price by $10, to $170, valuing CINF shares at 20x our 2026 operating EPS estimate of $8.50 (up by $0.25), versus its one-year average forward multiple of 22x and a peer average of 13x. We also raise our 2025 EPS estimate by $0.55, to $5.90. CINF posted Q2 operating EPS of $1.97 versus $1.29, besting our $1.49 EPS estimate and the $1.39 consensus view, on 15% higher operating revenues amid 15% higher premiums (versus our 8% to 13% growth forecast) and an 18% rise in investment income (versus our 7% to 12% forecast), and improved underwriting results, as evidenced by the Q2 combined ratio of 94.9% versus 98.5%. Underlying results also improved, to 85.1% from 88.2%. We think CINF's ability to produce above-peer operating revenue growth (that we see rising by 14% to 17% in 2025) and maintain underwriting profitability that is at the upper end of peer average provides the shares (currently yielding 2.3%)with a catalyst and support its premium-to-peers valuation.

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