Sell Travelers as inflationary pressures threaten the insurance company's margins, Goldman says

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It's time to sell this insurance stock as rising inflation puts pressure on its margins, Goldman Sachs says.

Insurance giant Travelers Companies' margins could be under pressure as inflation stays elevated, according to Goldman Sachs. Analyst Alex Scott downgraded Travelers Companies to sell from neutral following a recent analysis into life, and property and casualty insurance companies amid rising inflation.

Goldman Sachs also trimmed its price target on the stock to $170 from $190 and reduced earnings per share estimates through 2024. Shares of Travelers have jumped 13.8% this year, but the new price target represents a 4.5% downside from Thursday's close price.

 

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