Goldman Sachs Adds Ace (ACE) To Conviction Buy List

Goldman Sachs Group analysts Richard Ramsden, Brian Foran, Daniel Harris and Jessica Binder Graham added Ace Limited (NYSE: ACE) to its Conviction Buy List, with a price target of $61 per share.

The analysts said that Ace Limited continues to trade at attractive levels, even though it is expected to produce ROEs of 10% to 11% over the next few years.

They also said that there was a chance that Ace Limited would be added back to the S&P 500 index, which would probably increase investor interest in the company.

The Goldman Sachs Group analysts wrote, "in a volatile environment, sentiment is likely to improve for firms that offer stability, such as ACE. We believe ACE remains the stock to own for investors that want to maintain/gain exposure to the non-life insurance space in advance of any potential turn in the market over the next few years. Our $61, 12-month book value-based price target implies 20% upside."