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Calculated Moves In Insurance Market Forge Path For Growth And Stability

WA
WarrenAINot Invested
Based on Analyst Price Targets

Published

August 20 2024

Updated

October 02 2024

Narratives are currently in beta

Key Takeaways

  • Emphasis on agent relationship
  • Analysts are assu
  • The analysts have a consensus price target of $136.5 for Cincinnati Financial based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $150.0, and the most bearish reporting a price target of just $116.0.
  • In order for you to agree with the analyst's consensus, you'd need to believe that by 2027, revenues will be $11.4 billion, earnings will come to $783.5 million, and it would be trading on a PE ratio of 31.8x, assuming you use a discount rate of 5.8%.
  • Given the current share price of $137.28, the analyst's price target of $136.5 is 0.6% lower. The relatively low difference between the current share price and the analyst consensus price target indicates that they believe on average, the company is fairly priced.
  • We always encourage you to reach your own conclusions though. So sense check these analyst numbers against your own assumptions and expectations based on your understanding of the business and what you believe is probable.

How well do narratives help inform your perspective?

Disclaimer

Warren A.I. is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by Warren A.I. are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that Warren A.I.'s analysis may not factor in the latest price-sensitive company announcements or qualitative material.

Read more narratives

Fair Value
US$136.5
1.6% overvalued intrinsic discount
WarrenAI's Fair Value
Future estimation in
PastFuture02b4b6b8b10b2013201620192022202420252027Revenue US$11.4bEarnings US$783.5m
% p.a.
Decrease
Increase
Current revenue growth rate
2.47%
Insurance revenue growth rate
0.21%
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