Chubb Corporation Stock Upgraded: What You Need to Know
Every day, Wall Street analysts upgrade some stocks, downgrade others, and "initiate coverage" on a few more. But do these analysts even know what they're talking about? Today, we're taking one high-profile Wall Street pick and putting it under the microscope...
In its third-quarter financial report last month, insurer Chubb Corporation (NYSE: CB) told investors that it suffered pre-tax losses of $1.9 billion after paying out claims for customer damages from hurricanes Harvey, Irma, and Maria this year. These losses looked awful compared to last year's Q3 profit of $1.4 billion, and left Chubb with a net loss of $70 million for the quarter -- but that's great news.
On a per-share basis, Chubb's net loss worked out to $0.13 per diluted share, which according to StreetInsider.com (requires subscription) was $0.11 better than the $0.24 that Wall Street had expected the insurer to lose. It may have taken two weeks for this news to sink in, but on Wednesday morning, Chubb received its reward when investment banker JPMorgan announced it was upgrading Chubb stock to overweight and assigning Chubb stock a $175 price target.
Source: Fool.com
