Research Alert: CFRA Maintains Buy View On Shares Of Fairfax Financial Holdings Limited
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We maintain our Buy rating and target price of $2,810 on FFH, as underwriting health buoyed the impact from higher interest rates. The mixed results included a strong 94.1% combined ratio and 4.1% growth in gross premiums written, interest and dividend income rising 9%, but net earnings falling to $695.7 million due to $385.9 million in net investment losses on bonds. Should interest rates moderate with a calmed Iranian conflict resolution, the 'noise' of bond losses should be transient. Book value per share rose 0.5% to $1,250.14 when accounting for the $15/share dividend distributed in the quarter. While FFH results will almost never be flashy, we continue to believe in the company's process and value the stability of the business in what is an increasingly concentrated and volatile equity market in the US. We lower our FY 26 EPS estimate to $195.76 from $215.23 and maintain our FY 27 EPS at $226.33.
