Jefferies raises Hartford Financial stock target, maintains Hold rating By Investing.com

Jefferies has updated its outlook on Hartford Financial Services (NYSE: NYSE:), increasing the price target to $113 from the previous $100 while keeping a Hold rating on the stock on the back of a review of the company’s earnings per share (EPS) estimates, which have been slightly revised upwards for the years 2024 through 2026.

The revised EPS estimates suggest an increase of 1%, 3%, and 4% for the years 2024, 2025, and 2026, respectively. The change for the year 2024 reflects Hartford’s second quarter’s earnings surpassing expectations and a slight reduction in net investment income (NII) predictions for the second half of the year.

The analyst from Jefferies believes that the Commercial lines margins of Hartford Financial will perform better than previously anticipated.

Additionally, the brokerage firm has adjusted its biannual (BB) estimates for the second half of 2024 upward by $15 million per quarter, resulting in a new estimate of $400 million.

To be sure, Hartford reported strong second-quarter results, with core earnings of $750 million and significant growth across its Commercial and Personal Lines. Analyst firms have responded positively to these results.

For instance, Citi raised its price target for Hartford to $118, noting the company’s accelerating commercial lines growth and overall financial performance. Similarly, Piper Sandler also increased its price target to $125, highlighting strong earnings from the group unit. Last but not least, RBC Capital Markets, meanwhile, raised its target to $115, following Hartford’s second-quarter results that surpassed expectations.

InvestingPro Insights

InvestingPro data and tips provide a deeper dive into Hartford Financial Services’ (NYSE:HIG) financial health and market performance. With a market capitalization of $32.06 billion and a strong P/E ratio of 11.43, the company stands out for its financial stability. The adjusted P/E ratio for the last twelve months as of Q2 2024 further reinforces this position at 11.12, suggesting that the stock may be undervalued relative to near-term earnings growth.

InvestingPro Tips highlight that Hartford Financial has not only maintained dividend payments for 29 consecutive years but has also raised its dividend for 11 consecutive years, indicating a robust and reliable return to shareholders. Analysts have taken note of the company’s performance, with 7 analysts revising their earnings upwards for the upcoming period, reflecting confidence in Hartford’s ability to sustain its growth trajectory.

For investors looking for comprehensive analysis and additional insights, there are more InvestingPro Tips available, which can be accessed for Hartford Financial at: https://www.investing.com/pro/HIG. Interested readers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking access to valuable market insights that could inform investment decisions.

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