SYDNEY - UBS has raised its 12-month share price target on QBE Insurance Group Ltd to A$18.20 ($20.44) from A$17.85 after the Australian insurer bought marine insurer British Marine Holdings Ltd for about A$270 million.
UBS analysts Ralph Butterworth and Paul O'Sullivan, who retained a "neutral" rating, also upgraded theirearnings forecasts by 1.9 per cent for 2006 and by 2.2 per cent for 2007.
Goldman Sachs JBWere, which maintained its "outperform/buy" rating, lifted its valuation to A$18.40 a share from A$17.70.
"This reinforces our positive view on QBE stock," GSJBW analyst Ryan Fisher said in a report.
Credit Suisse First Boston kept an "outperform" rating.
"We reiterate our positive view on QBE which we believe is well positioned to benefit from rising property insurance rates in the wake of Hurricane Katrina with further upside through ongoing small accretive bolt-on acquisitions such as this one," analysts Arjan van Veen, Nick Selvaratnam and Alex Chau said.
Shares in QBE last traded 1.8 per cent higher at A$18.64, having hit a record high of A$18.70 in early trade.
