Fairfax Financial price target raised by this analyst

Following the company’s fourth quarter results, RBC analyst Scott Heleniak has raised his price target on Fairfax Financial (Fairfax Financial Stock Quote, Chart, News, Analysts, Financials TSX:FFH).

On February 13, FFH reported its Q4 and fiscal 2024 results. The company posted Net Insurance Revenue of $6.33-billion, up from $5.68-billion, year-over-year.

“We remain focused on being soundly financed and ended 2024 in a strong financial position with $2.5 billion in cash, marketable securities and investments in the holding company, and an additional $2.0 billion, at fair value, of investments in associates and consolidated non-insurance companies owned by the holding company,” CEO Prem Watsa said.

“Overall Fairfax continues to produce solid overall combined ratios with a sub-90 combined ratio in Q4 even with hurricane impacts. Underwriting results have remained healthy in recent quarters and the Q4 reserve release run rate was above peers and evident across all segments,” Heleniak wrote. “Premium growth was up double digits although the company is being more selective in targeting growth given market conditions. Share buybacks continued at a notable pace. Q1 California wildfire loss guidance was notable given its reinsurance exposure to the event. We remain constructive on the shares at the current valuation given strong execution.”

As reported by the Globe and Mail, the analyst February 18 maintained his “Outperform” rating and raised his price target on Fairfax from (US) $1600.00 to $1750.00.