lt buy $40 target

http://www.intelligentinvestor.com.au/articles/QBE-Insurance-Group-QBE/Stocks-in-Brief-2301149.cfm?articleID=2301149

QBE INSURANCE GROUP (QBE)

Recommendation:
LONG TERM BUY
BLUE CHIP INDUSTRIAL

Recommendation guide
Buy
Below $18

Long Term Buy
Up to $25

Hold
Up to $40

Take Part Profits
Above $40

QBE Insurance ranked tenth in our research director’s Australia’s ten best businesses special report. That an insurance company rates amongst Australia’s corporate elite says something about management.

Chief executive Frank O’Halloran has guided QBE through the 9/11 terrorist attacks, myriad insurance and economic cycles and built something of a rarity in Australia; a successful insurance company with large overseas operations.

With the share price falling a little recently, there’s currently an opportunity for investors to add a premium blue chip stock to their portfolio at a decent price. Though the company isn’t dirt cheap, as you can see from the recommendation guide, rarely do such high quality stocks languish in the bargain bin.

QBE’s 5.9% partly franked dividend yield is also attractive, so we’re topping up our stake in the Income portfolio to around 6% by adding 200 shares at $21.35. The share price is down 3% since 20 Aug 09 (Long Term Buy – $22.06) and our recommendation remains LONG TERM BUY.