03:50 PM EDT, 04/30/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We keep our 12-month target price of $420, valuing EG shares at 6.1x our 2025 operating EPS estimate of $68.50 and at 6.8x our 2024 EPS estimate of $61.59 (raised today by $0.74), versus the shares' three-year average forward multiple of 8x and a disparate peer average of 10x. Q1 operating EPS of $16.32 versus $11.31 topped our $14.58 EPS estimate and the $16.03 consensus view, on 26% higher operating revenues, including nearly 18% higher premiums (the upper end of our 13%-18% growth forecast). Underwriting results improved, despite EG's exposure to the Baltimore bridge collapse (included in the $85M of Q1 catastrophe claims vs. $110M a year ago), as the combined ratio was 88.8% versus 91.2%, above industry averages. Though EG has some "long tail" claim exposure that could deteriorate, we view its underwriting track record as solid and think its ability to generate profitable, above-average premium growth provides the shares (currently yielding 1.9%) with a catalyst to close its valuation gap with peers.