JMP Securities analyst Matthew Carletti downgraded XL Group Ltd to "market perform" from "market outperform" after AXA proposed to acquire the company, saying he does not expect a superior rival bid to emerge.
AXA's offer to pay $57.60 per share in cash represents "a fair valuation multiple for [XL]," Carletti said, adding that investors are "quite happy" with the XL offer. He does not see further upside to the share price between now and deal closure given that the stock is trading at a discount to the deal price.
His EPS estimates for 2018 and 2019 are $3.90 and $4.10, respectively.
