QBE fell -2.6% yesterday; when we wrote about the stock last month, we said, “We can see QBE testing below $14 over the coming months, which is a more optimum entry level for MM.” This was a bearish call at the time, but after the stock’s 15% decline in a rising market, today’s a logical time to reassess the insurer. However, although the stock has reached our initial $14 target area following the Fed pivot this week, we are inclined to lower our target towards $13.50 as bond yields continue to look bearish – another 4% below yesterday’s close.
- We may consider QBE around $13.50 if/when we believe bond yields have fallen too far too fast.
MM will get more positive on QBE around $13.50
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