BMO Capital Markets Raises Fairfax Financial Price Target to C$2,200.00

In recent financial news, BMO Capital Markets has significantly increased its price target for Fairfax Financial (TSE:FFH) from C$1,850.00 to C$2,200.00. This adjustment was disclosed in a research report released on Monday, highlighting that the updated target represents a potential upside of 20.71% based on the stock's closing price prior to the announcement.

Recently, other investment analysts have also shared their perspectives on Fairfax Financial. For instance, the Royal Bank of Canada raised their price target from C$1,325.00 to C$1,425.00, giving the stock an "outperform" rating in their report dated October 3rd. Similarly, National Bankshares lifted their target from C$2,100.00 to C$2,200.00 in a note released on October 30th, reflecting the same 'outperform' rating. Additionally, Scotiabank matched this new price estimate of C$2,200.00 in a note on Monday, while Cormark increased their target from C$1,800.00 to C$2,125.00.

Current Stock Performance

On the trading day when the new price target was announced, shares of Fairfax Financial fell by C$65.51 during midday trading, bringing the price down to C$1,822.53. The trading volume for the company was 26,819 shares, which is below the usual average of 54,450 shares. Over recent periods, Fairfax Financial has exhibited a 50-day moving average of C$1,681.82 and a 200-day moving average of C$1,587.94. The stock has experienced a 12-month low of C$1,171.70 and a high of C$1,890.36. Fairfax Financial currently maintains a market capitalization of C$42.48 billion, a price-to-earnings (P/E) ratio of 8.15, a PEG ratio of 0.27, and a beta of 0.83. Financial metrics show a quick ratio of 0.93, a current ratio of 3.75, and a debt-to-equity ratio of 40.13.

Recent Earnings Reports

Fairfax Financial's most recent quarterly earnings report was released on August 1st, where the company reported earnings per share (EPS) of C$50.87. This figure missed analysts' predictions, which anticipated EPS of C$51.23. The reported revenue for that quarter totaled C$10.25 billion, with the company showing a net margin of 12.27% and a return on equity of 17.91%. Analysts expect that Fairfax Financial will generate approximately 212.30 in EPS for the current fiscal year.

Insider Activity

In terms of insider trading, notable transactions include Director Brian David Young selling 4,280 shares of stock on August 30th at an average price of C$1,617.96, resulting in a total value of approximately C$6.92 million. Additionally, Senior Officer Olivier Elie Quesnel sold 173 shares on August 15th at an average price of C$1,566.13, totaling around C$270,940.49. After these transactions, Quesnel retained ownership of 202 shares valued at about C$316,358.26. Over the last three months, insiders have sold a total of 6,953 shares worth approximately C$11.3 million, with corporate insiders owning about 3.76% of the company’s outstanding shares.

About Fairfax Financial

Fairfax Financial Holdings Limited, through its subsidiaries, specializes in providing property and casualty insurance and reinsurance, along with investment management services across various regions including the United States, Canada, Asia, and other international markets. The firm operates through segments such as Property and Casualty Insurance and Reinsurance, Life Insurance, Run-off, and Non-Insurance Companies.

BMO, Fairfax, Stock