- RBC Capital analyst Mark A. Dwelle raised the price target for Fairfax Financial Holdings (TSX:FFH) (OTC:FRFHF) to $750 from $675.
- The analyst kept Outperform rating for the shares.
- Dwelle stated that the hard market is still driving strong top-line growth and improved underwriting margins, and management did a great job of protecting book value as interest rates rose, positioning them for improved investment results in the future.
- While the portfolio is still complex, he added that the value positioning seems to be well matched to current market conditions.
- With underwriting contributions improving and the balance sheet as well-positioned, the analyst sees significant room for multiple expansion and views company shares as a best-in-class value opportunity at about 0.85x book value, mentioned the analyst.
- The company recently reported its first-quarter results, with net premiums written by the property and casualty insurance and reinsurance operations rising 27.8% and gross premiums written improving 21.9%.
- Price Action: FFH shares are trading lower by 7.31% at C$654.26 on TSX, and FRFHF is lower by 7.57% at $508.42 on the last check Monday.
