UPDATE: Sterne Agee Initiates Coverage on HCI Group on Strong Market Position

In a report published Tuesday, Sterne Agee analyst Dan Farrell initiated coverage on HCI Group (NYSE: HCI) with a Buy rating and $46.00 price target.

In the report, Sterne Agee noted, “We are initiating coverage on HCI with a Buy rating and a $46 price target. While the competitive environment in Florida is getting more challenging, we believe HCI is well positioned to drive earnings and book value growth through opportunistic acquisitions, select geographic expansion, and gradual deployment of it sizable cash position to buybacks and investments (both fixed income and a growing real estate portfolio). Given the stock weakness YTD, valuation is more attractive, in our view.”

HCI Group closed on Monday at $37.05.