FBR Capital Markets is lowering its price target for Argo Group International Holdings, Ltd. (AGII) after the company reported disappointing third quarter. The target has been cut to $44 from $48.
FBR said that a low return on equity remains Argo's main problem, and low interest rates and high levels of industry competition doesn't make improvement likely.
On Monday, the company reported operating EPS of $0.82, missing the $1.04 that analysts were predicting.
"With these returns, it is difficult to justify valuation close to book value." FBR said in a note to clients. "We would feel much more aggressive in pitching AGII shares if management could present a comprehensive plan to improve ROE."
The analyst kept the rating on AGII at Outperform.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.