NEW YORK (TheStreet) -- Shares of Chubb (CB) are down by 0.31% to $129.80 in early-afternoon trading on Monday, as BMO Capital Markets downgraded the company's rating to "market perform" from "outperform" earlier today.
Additionally, the firm raised its price target to $136 from $134 for the Warren Township, NJ-based company, known as the world's largest publicly traded property and casualty insurer.
Last summer, BMO upgraded Chubb based on its merger with ACE Limited. With the stock now above $130, the firm believes "our thesis has been priced in and consequently we see now as a good time for investors to take their foot off the gas a little."
While Chubb "willl produce long-term value creation from the combined entity," BMO believes investors should wait for a better entry point in the stock. "In our opinion, Chubb should be a core long-term holding for insurance investors and we are not recommending that such investors get out of the name."
But certain risks such as hurricane season, which runs June to October, or hiccups that could come from last year's merger with ACE, lead BMO to recommend buying stocks of the "core long-term holding for insurance investors" at a better suited time in the future.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate CHUBB LTD as a Buy with a ratings score of A-. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.CB data by YCharts