Arch Capital upgraded to Buy at BofA

• Analyst Jay Cohen know he's got an aggressive price target of $64, but he sees four factors making the valuation seem more reasonable: 1) Value in the mortgage insurance business 2) A growing earnings stream in Watford Re 3) Excess capital 4) ROE is understated since Arch Capital (ACGL +0.5%) does not include alternative investment income in operating earnings.