UPDATE: Sterne Agee Raises PT on Atlas Financial Holdings on Increased Confidence in Growth and Long Run

In a report published Tuesday, Sterne Agee analyst Dan Farrell raised the price target on Atlas Financial Holdings (NYSE: AFH) from $8 to $11, while reiterating its Buy rating.

In the report, Sterne Agee noted, “We are raising our price target to $11 from $8 per share given increasing confidence in earnings growth trajectory. The company has exceeded our premium growth assumptions over the last 2 quarters and continues to achieve rate increases that should drive LR improvement. Our EPS estimates for 2014 and 2015 imply 106% and 33% growth in EPS, respectively, and we feel our top line and LR assumptions could still prove conservative.”

Atlas Financial Holdings closed on Monday at $8.80.