Sandler O'Neill & Partners analyst Paul Newsome has downgraded his rating on United Fire Group Inc. to "hold" from "buy" due to valuation.
Newsome noted that United Fire's stock has risen about 33% since he upgraded it to "buy" in the third quarter of 2017.
The analyst expects the company to continue to report a return on equity of about 7%. Newsome also expects United Fire to log second-quarter catastrophe losses of $28.2 million, though that number could come down, he added, as the spring storm season in the U.S. has been fairly mild.
Newsome's price target remains unchanged at $58, and his 2018 EPS estimate is still $2.45.
