BMO Research Today - May 19, 2026

Research evidence excerpt

BMO Research Today - May 19, 2026

RATING DOWNGRADES IN THIS ISSUE

Hanover Insurance Group Macro and Sector Updates

Michael Zaremski, US P&C Insurance Analyst - Insurance Property & Casualty BMO Global Commodities Research

Downgrade to Mkt; Taking Profits, Still Operating on All Cylinders Fertilizers & Chemicals

Mkt $197.54 $203.00 $6,912 Commodities Daily

Rating Price Target Mkt Cap. Metals & Mining - US

Insurance Property & Casualty

• Taking profits when THG is hitting on all cylinders? In our view, valuation multiples are nearing fair

The Change Tracker value for many insurers, including THG (= to ~1.8x book) which exhibits a larger than peer-average

home insurance portfolio. US Chemicals

• The latter inherently throws off higher RoE volatility given home insurance sports a >3x catastrophe US Real Estate

load vs. auto and commercial insurance lines of insurance.

Rating Downgrades• THG's RoE volatility factor has been +50-100% above its historical 11-yr avg in recent years' (see

exhibits 10-11) due to its home insurance segment. THG

Estimates/Targets Raised

ESTIMATES / TARGETS RAISED

USA

Americas Gold and Silver

Estimates/Targets Lowered

Brian Quast, Precious Metals Analyst - Metals & Mining

RYN TWFG

Q1/26 Financials Mixed, Galena Remains on Track

Company Updates - USOP $8.96 $12.00 $2,920

Rating Price Target Mkt Cap. ARX AVAH PTC REGN

TTWO

• After pre-releasing Q1/26 silver production which beat our prior expectations, USA has reported adj.

EPS of $0.06/sh, slightly below our $0.09/sh estimate but in line with $0.06/sh consensus. Company Updates - Canada / Int'l

• In terms of costs, Q1/26 costs were mixed. Cash costs of $23.57/oz were slightly above our estimate HR.UN IFP SSRM