The Globe and Mail reports in its Friday, Oct. 11, edition that Raymond James analyst Brenna Phelan says Trisura Group ($30.77) is a "uniquely high-growth, ROE expansion story in the specialty P&C insurance market." The Globe's David Leeder writes in the Eye On Equities column that Ms. Phelan commenced coverage with an "outperform" rating. Ms. Phelan targets the shares at $40. Analysts on average target the shares at $37.30. Ms. Phelan says in a note: "Trisura's operations feature an attractive mix of a well-established Canadian business with an impressive 13-plus year track record complemented by a high-growth, capital-light U.S. Fronting business, currently benefiting from hard markets and oversupply of reinsurance capital. Ultimately, we see Trisura evolving into an integrated North American Specialty Lines insurance platform, generating a 15-per-cent-plus ROE once at scale. In the meantime, we think that its defensive business attributes, continued strong execution on near-term growth opportunities in the U.S. and consecutive, consistent quarters of ROE expansion support the stock's valuation multiple and we see the stock grinding higher with its outsized BVPS [book value per share] growth."
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