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Piper turns bearish on Cincinnati Financial, ProAssurance

|About: Cincinnati Financial Corpor... (CINF)|By: , SA News Editor

Piper Sandler analyst Paul Newsome downgrades Cincinnati Financial (NASDAQ:CINF) and ProAssurance (NYSE:PRA) to Underweight as he sees limited growth opportunities over the medium term.

CINF falls 1.2% premarket and PRA slides 1.0%.

He sees investor focus shifting from price increases to earnings and earnings growth in 2020.

Sees Cincinnati Financial's outlook for its commercial auto insurance business, which is 9.4% of its premium as "very optimistic".

PRA's main businesses are medical malpractice insurance and workers' comp insurance, and "excluding commercial auto insurance, these may be the most challenging market segments for margin growth in the commercial insurance industry," Newsome writes.

Quant rating for CINF is Neutral, the same as for PRA.

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