BMO reiterates Hanover Insurance stock rating on ROE outlook
BMO Capital reiterated a Market Perform rating on The Hanover Insurance Group (THG) with a $225 price target. The firm noted management's five-year ROE guidance of mid-to-high teens, higher than consensus estimates. THG's current ROE is 22%, with 7 analysts revising earnings upwards. The company expects an 86-87% combined ratio, better than consensus. BMO expects the stock to outperform as investors assess the guidance. THG's stock has returned 35% over six months but is considered overvalued. T

