Stifel Nicolaus announced on Thursday that they have increased their price target for financial services company, Hartford Financial Services Group Inc(HIG).
The firm reported that they have maintained a “Buy” rating for HIG, and have increased its price target from $25 to $28. This price target suggests a 20% increase from the stock’s current price of $22.32.
An analyst from the firm commented, “shares of HIG currently trade at only 46% of current book value, well below its P&C peers’ 109% average and life insurers’ 71% average, which we think reflects investors’ caution over HIG’s restructuring. We think the shares will outperform as core P&C results improve, and as Hartford finalizes and discloses its planned use of the $2.2 billion of statutory capital freed up from its recent unit sales. Our $28 target price represents 53% of 2013E BVPS or about 8.2x our 2014E EPS.”
Hartford shares were mostly flat during Thursday morning trading. The stock is up 36% YTD.
The Bottom Line
Shares of Hartford Financial Services (HIG) have a 1.79% dividend yield, based on last night’s closing stock price of $22.30. The stock has technical support in the $19-$20 price area. If the shares can firm up, we see overhead resistance around the $24-$25 price levels.
Hartford Financial Services Group Inc(HIG) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.
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