Salomon Smith Barney downgraded RenaissanceRe Holdings (RNR ) to neutral from buy.
Analyst Marco Pinzon says he's downgrading solely on valuation. He notes RenaissanceRe shares have risen 20% since he reviewed second-quarter results on July 23, and now trade in line with his $38 target. Pinzon continues to rank RennaissanceRe as the premier reinsurer in the sector based on strong management and a strong track record, but he thinks this view is now fully reflected in the stock.
Pinzon maintains his $38 target, based on a stated book value multiple of 2.1, or 1.9 times his 2002 book value per share estimate. He also is keeping a positive view of market conditions in the reinsurance and insurance sectors.