Selective Insurance Intrinsic Stock Value – Selective Insurance Upgraded to Outperform by BMO Capital, Price Target Raised to $105

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Selective Insurance ($NASDAQ:SIGI) is a leading provider of property and casualty insurance products in the United States. The company offers a wide range of insurance solutions for businesses, individuals, and families, including commercial and personal auto, homeowners, and general liability policies. Its strong financial performance and commitment to customer satisfaction have earned it a solid reputation in the insurance industry. In a recent development, BMO Capital analyst Michael Zaremski upgraded Selective Insurance’s stock from Market Perform to Outperform and raised the price target from $95 to $105. This upgrade highlights the company’s strong fundamentals and growth potential in the insurance market. One of the key factors driving this upgrade is Selective Insurance’s impressive financial performance. This growth can be attributed to the company’s disciplined underwriting approach and diversified product portfolio. Moreover, Selective Insurance’s focus on customer satisfaction has also played a significant role in its success.

The company has consistently received high ratings for its customer service and claims handling, which has helped it retain and attract new customers. With customer retention rates of over 90%, Selective Insurance has established a loyal customer base and a strong foundation for future growth. The new price target of $105 set by BMO Capital also reflects the company’s strong prospects for the future. As the demand for insurance products continues to rise, Selective Insurance is well-positioned to capitalize on this growth opportunity. The company’s strategic initiatives, such as expanding into new markets and investing in technology, are expected to drive further growth and enhance its competitive advantage. With its solid financials, commitment to customer satisfaction, and strategic initiatives, Selective Insurance is a promising player in the insurance industry, making it a favorable investment opportunity for investors.

Price History

On Tuesday, SELECTIVE INSURANCE, a property and casualty insurance company, received a positive outlook from BMO Capital, resulting in an upgrade to an “Outperform” rating. This announcement caused the stock to open at $91.33, slightly lower than the previous day’s closing price of $91.57, but ultimately closed at $90.0, down by 1.71%. An “Outperform” rating suggests that the stock is expected to outperform the market average, making it an attractive investment opportunity for investors. This upgrade also comes with an increased price target, which indicates that BMO Capital believes the stock has room for growth. The decrease in stock price from the opening to the closing of the market on Tuesday may be due to market fluctuations or profit-taking by investors who had bought the stock at a lower price.

However, this slight dip does not detract from the overall positive outlook given by BMO Capital. SELECTIVE INSURANCE has been performing well in recent years, with its stock price steadily increasing over the past 12 months. The company offers a range of insurance products and services, including commercial and personal property insurance, as well as flood insurance. This diverse portfolio has helped the company to weather any potential market downturns and maintain a stable financial position. With this upgrade and increased price target, SELECTIVE INSURANCE is likely to garner more attention from investors. As more investors buy into the stock, it is expected to continue its upward trend, which could lead to even higher returns for shareholders. Overall, this upgrade by BMO Capital is a positive sign for the company and reinforces its strong position in the insurance industry. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Selective Insurance. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Selective Insurance. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Selective Insurance. More…

Key Ratios Snapshot

Some of the financial key ratios for Selective Insurance are shown below. More…

Analysis – Selective Insurance Intrinsic Stock Value

As part of our analysis at GoodWhale, we have examined the wellness of SELECTIVE INSURANCE. We believe that this is an important aspect to consider when evaluating the potential of a company’s stock. After conducting our analysis, we have determined that the fair value of SELECTIVE INSURANCE’s share is approximately $102.8. This calculation was based on our proprietary Valuation Line, which takes into account various factors such as financial performance, market trends, and industry comparisons. Currently, the stock of SELECTIVE INSURANCE is being traded at $90.0, indicating that it is undervalued by approximately 12.4%. In other words, the market price of the stock is lower than what we believe its true value to be. This presents an opportunity for investors to potentially benefit from future price increases as the stock reaches its fair value. In conclusion, our analysis shows that SELECTIVE INSURANCE’s stock is undervalued and has potential for growth. Investors may want to consider adding this stock to their portfolio based on our findings. However, it is important to conduct further research and carefully consider all factors before making any investment decisions. More…

Peers

The company’s competitors are Chubb Ltd, Safety Insurance Group Inc, and Suncorp Group Ltd.

– Chubb Ltd ($NYSE:CB)

Chubb Ltd is a holding company for insurance and reinsurance companies, which underwrite property and casualty, and accident and health insurance. The company has a market cap of 88.41B as of 2022 and a return on equity of 10.07%. Chubb Ltd operates in over 54 countries and territories and provides a broad range of insurance products and services for individuals, families, and businesses. The company’s products and services include homeowners insurance, automobile insurance, commercial property insurance, workers’ compensation insurance, and general liability insurance.

– Safety Insurance Group Inc ($NASDAQ:SAFT)

The company’s market cap is 1.35B as of 2022 and its ROE is 5.35%. The company is a provider of insurance products and services in the United States. Its products include auto, home, business, and life insurance.

– Suncorp Group Ltd ($ASX:SUN)

Suncorp Group Ltd is a leading financial services provider in Australia and New Zealand. The company has a market cap of 15.04 billion as of 2022 and a return on equity of 5.91%. Suncorp provides a range of banking, insurance, and investment products and services to its customers. The company has a strong presence in both Australia and New Zealand, with over 9,000 employees across the two countries.

Summary

BMO Capital analyst Michael Zaremski has upgraded Selective Insurance to Outperform from Market Perform and raised its price target from $95 to $105. This suggests confidence in the company’s future growth potential and a positive outlook for investors. The upgrade likely takes into account factors such as strong financial performance and favorable industry trends.

As insurance companies continue to navigate challenges posed by the pandemic, Selective Insurance’s solid positioning and growth prospects make it an attractive investment option. Investors may want to consider adding Selective Insurance to their portfolios based on this positive analysis from BMO Capital.