RBC Dominion Securities Issues Pessimistic Forecast for Fairfax Financial (TSE:FFH) Stock Price

Key Points

• RBC Dominion Securities lowered Fairfax Financial’s price target to C$2,223 from C$2,316, while maintaining an “outperform” rating; the revised target implies 7.54% downside from the reported share price.
• Despite the cut, analyst sentiment remains broadly positive: Fairfax has a “Moderate Buy” consensus rating and an average price target of C$2,673, based on five Buy and three Hold ratings.
• Fairfax shares rose 5.0% to C$2,404.23 during Thursday trading. The company reported quarterly EPS of C$90.05 on C$18.46 billion in revenue, with a 16.94% return on equity and 13.57% net margin.

Fairfax Financial (TSE:FFH - Get Free Report) had its price target reduced by investment analysts at RBC Dominion Securities from C$2,316.00 to C$2,223.00 in a report issued on Thursday, BayStreet reports. The brokerage currently has an "outperform" rating on the stock. RBC Dominion Securities' price target suggests a potential downside of 7.54% from the stock's current price.

FFH has been the topic of a number of other research reports. National Bank Financial raised their price objective on Fairfax Financial from C$3,300.00 to C$3,450.00 and gave the company an "outperform" rating in a research report on Monday, July 27th. ATB Cormark Capital Markets cut their target price on Fairfax Financial from C$2,600.00 to C$2,500.00 and set a "sector perform" rating on the stock in a research note on Thursday, October 8th. Finally, Canadian Imperial Bank of Commerce set a C$2,350.00 target price on shares of Fairfax Financial and gave the stock a "neutral" rating in a report on Friday, June 26th. Five investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of C$2,673.00.

Fairfax Financial Stock Up 5.0%

Fairfax Financial stock traded up C$114.65 during mid-day trading on Thursday, reaching C$2,404.23. 45,262 shares of the company were exchanged, compared to its average volume of 70,469. The company has a debt-to-equity ratio of 54.38, a quick ratio of 0.93 and a current ratio of 2.03. The firm has a market cap of C$53.79 billion, a P/E ratio of 11.80, a PEG ratio of 0.27 and a beta of 0.34. The business has a fifty day moving average of C$2,261.40 and a 200 day moving average of C$2,295.61. Fairfax Financial has a 12-month low of C$2,066.16 and a 12-month high of C$2,700.00.

Fairfax Financial (TSE:FFH - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The company reported C$90.05 earnings per share (EPS) for the quarter. The business had revenue of C$18.46 billion for the quarter. Fairfax Financial had a return on equity of 16.94% and a net margin of 13.57%. Research analysts anticipate that Fairfax Financial will post 212.30 earnings per share for the current fiscal year.

About Fairfax Financial

Fairfax Financial is a holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and the associated investment management.

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