RBC Capital Markets has upgraded its recommendation on speciality insurance group Lancashire Holdings (LON:LRE) to 'sector perform' from 'underperform' stating that its concerns have now been addressed.
Specifically, the broker commented: "Whilst we had always seen Lancashire as a high quality underwriting operation, company-specific issues at the end of 2015 led to our Underperform rating.
"We believe that these issues are now behind us and upgrade to Sector Perform from Underperform."
Analysts have raised their price target to 625 pence per share (from 500 pence) which it says is to reflect a lower cost of equity and the weakening of Sterling vs the US dollar.
At 2:38pm: (LON:LRE) Lancashire Holdings Ltd share price was +5.25p at 636.25p