Keefe Bruyette Raises Its Price Target on The Hanover Insurance Group, Inc. (THG) to $208 and Maintains an Outperform Rating

Core Insights - The Hanover Insurance Group, Inc. (NYSE:THG) is identified as one of the 11 cheap growth stocks to consider for investment [1] - Keefe Bruyette has raised the price target for THG to $208 from $207, maintaining an Outperform rating, citing undervaluation due to margin-expanding rate increases in Core Commercial and Specialty segments [2] - The company reported a fourth-quarter non-GAAP EPS of $5.79, exceeding consensus estimates of $5.03, and a book value per share of $100.90, reflecting a 5.1% increase from the previous quarter [3] Financial Performance - In 2025, THG achieved a record annual operating return on equity of 20.1% and 23.1% in the fourth quarter, with net written premiums of $6.3 billion, indicating approximately 4% year-over-year growth [3] - Strong retention in Personal Lines is attributed to customers holding multiple policies, with growth opportunities noted in small-to-middle-market accounts in Core Commercial and Specialty despite increased competition [3] Business Segments - The Hanover Insurance Group provides property and casualty insurance products and services through its Core Commercial, Specialty, Personal Lines, and Other segments [4]