Earthquake Empathy? Financial Analysts Look For the Opportunity

Interesting survey of investment firms' advice relative to how it may impact corporate securities:

Meredith Lepore reports in Business Insider:


"Let's take a look at analysts' morning notes.

INSURANCE SECTOR:

JEFFERIES: With the Japanese earthquake our first thoughts are that insured losses appear to be limited. We are working on the assumption of a $10 billion industry loss. The impact on reinsurer balance sheets is likely to be around 5%. We expect some rate momentum in the upcoming Japanese/CAT renewals, but not enough for the total industry cycle to turn. Tsunami and aftershocks remain real risks, and this will drag on sector performance.


CATERPILLAR (CAT):

MORGAN STANLEY: Good outlook. Share price will rise relative to the industry over the next 30 days. Yesterday's sell off makes for an attracting buying opportunity.

SARA LEE (SLE):

GOLDMAN SACHS: Confusion creates opportunity. We see four potential catalysts to supply our buy rating: increased confidence in SLE's earnings power as FY2011 comes to a close, clarity around long-term prospects of each firm as the new company management teams take the stage, the split is executed and special dividend paid and increased anticipating of M7A as the New Co. stories unfold.