Mercury General stock charges up toward 3-month higher after triple upgrade at Raymond James

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Shares of Mercury General Corp. MCY, +13.59% charged up 12.9% toward a three-month high in afternoon trading Friday, after automobile insurance broker and agency writer received a triple upgrade from Raymond James analyst Gregory Peters, who said he expects the California auto rate log jam to break. The stock has now run up TK% since the company reported a surprise third-quarter profit, according to FactSet. Peters raises his rating on the stock three notches, to strong buy from underperform, and established a $45 price target. He said the swing from bearish to really bullish reflects his expectation of improved profitability, given that the California Division of Insurance (DOI) should approve the company’s auto-rate filings sometime in the next six months. He’s also bullish on the success of management’s ongoing rate initiatives in other states and growing net interest income as a result of the higher interest rate environment. The stock has soared 26.2% over the past three months but has still tumbled 31.1% year to date, while the S&P 500 SPX, +1.36% has lost 21.5% this year.

This article was originally published by Marketwatch.com. Read the original article here.

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