Barclays Stays Bullish on Chubb, but Lowers Estimates on Higher Catastrophe Losses (CB)

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Analysts at Barclays Capital on Thursday offered some mixed commentary for property and casualty insurer The Chubb Corporation ( CB ).

Overall, the firm remains bullish on the stock, keeping its "Overweight" rating and $85 price target in tact. That target suggests a 20% upside to the stock's Wednesday closing price of $70.83.

A Barclays analyst commented, "Chubb expects 2Q12 catastrophe losses of $200-$240mn before-tax (7-8 CR points and $0.48-$0.57/shr after-tax) due to U.S. hail and windstorms, which is higher than we modeled. As a result, we are reducing our 2Q12 EPS estimate to $1.10 from $1.45 and our 2012 EPS estimate to $5.65 from $6.00 (consensus=$5.94)." The firm left its full-year 2013 estimate unchanged at $6 per share.

Chubb shares were mostly flat in premarket trading Thursday.

The Bottom Line
Shares of Chubb Corporation ( CB ) have a 2.32% dividend yield, based on last night's closing stock price of $70.83. The stock has technical support in the $65-$66 price area. The shares are trading near all-time highs.

The Chubb Corporation ( CB ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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