AmTrust Financial Services (NASDAQ:AFSI) was downgraded by stock analysts at Compass Point from a “buy” rating to a “neutral” rating in a report issued on Tuesday, ARN reports. They currently have a $43.00 target price on the stock, up from their previous target price of $38.00. Compass Point’s price objective would suggest a potential upside of 3.76% from the stock’s previous close.
The analysts wrote, “We are raising our price target to $43 from $38 and downgrading AFSI to Neutral from Buy. Our downgrade is based on the company not providing the necessary upside based on our updated price target which incorporates our year-end 2014E diluted book value and ROAE expectations. The company has returned 26% since our May 2, 2013 upgrade to Buy, while the S&P 500 has returned 6.1% over the same time period. Our updated $43 price target is based on a 2.0x P/B multiple to our 2014E diluted BVPS of $21.60 and an operating ROAE expectation of 18%. However, BVPS growth could be higher due to future realized gains and returns on the company’s Life Settlement investments that are not included in our operating estimates.”
AmTrust Financial Services (NASDAQ: AFSI) opened at 41.44 on Tuesday. AmTrust Financial Services has a 1-year low of $23.90 and a 1-year high of $41.81. The stock’s 50-day moving average is currently $36.38. The company has a market cap of $2.793 billion and a price-to-earnings ratio of 14.23.
AmTrust Financial Services (NASDAQ:AFSI) last released its earnings data on Wednesday, May 1st. The company reported $0.81 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.74 by $0.07. The company had revenue of $567.80 million for the quarter, compared to the consensus estimate of $454.90 million. During the same quarter in the previous year, the company posted $0.71 earnings per share. The company’s revenue for the quarter was up 37.1% on a year-over-year basis. On average, analysts predict that AmTrust Financial Services will post $3.22 earnings per share for the current fiscal year.
A number of other firms have also recently commented on AFSI. Analysts at Zacks upgraded shares of AmTrust Financial Services from a “neutral” rating to an “outperform” rating in a research note to investors on Tuesday, July 2nd. They now have a $39.20 price target on the stock. Separately, analysts at SunTrust reiterated a “buy” rating on shares of AmTrust Financial Services in a research note to investors on Friday, June 28th. They now have a $45.00 price target on the stock. Finally, analysts at FBR Capital Markets raised their price target on shares of AmTrust Financial Services from $39.00 to $46.00 in a research note to investors on Friday, June 28th. They now have an “outperform” rating on the stock.
Two investment analysts have rated the stock with a hold rating and three have given a buy rating to the company. AmTrust Financial Services has a consensus rating of “Buy” and an average target price of $43.30.
Amtrust Financial Services, Inc is a holding company. The Company is a multinational specialty property and casualty insurer focused on generating consistent underwriting profits.
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