Ahead of the Bell: American Financial
NEW YORK --A Credit Suisse analyst upgraded American Financial Group Inc. on Tuesday, saying the insurer's stock trades at an unwarranted discount compared with its peers.
Credit Suisse analyst Charles B. Gates lifted his rating on American Financial Group's shares to "Outperform" from "Neutral."
The Cincinnati-based insurer's stock trades at 1.12 times the net value of the company's assets, while competitors such as W.R. Berkley Corp. and RLI Corp. trade at more than 1.6 times book value.
Gates said some discount on American Financial Group's stock is warranted. The insurer, with $3.92 billion in annual premiums, faces concerns about its liability for asbestos claims and other environmental issues. He cut his price target to $33 from $38.
However, the discount has widened too far, he said. The stock is down 21 percent so far this year. 