Nigel Dally
Morgan Stanley
First-place appearances: 0

Total appearances: 10

Analyst debut: 2003

Down one notch to No. 3 is Nigel Dally of Morgan Stanley, who earns kudos from one fan for his “analysis of the key industry trends and the impact on individual stocks.” Dally holds a constructive view of the sector that is informed by the improving performance of U.S. stock markets and, more to the point, climbing interest rates. The low-interest-rate environment had been a meaningful headwind, he observes, so the group’s outlook has brightened considerably. In addition, “valuations are still at a level where life insurers are cheaper than most other financials, and that gap can continue to narrow as the rate environment continues to improve,” the analyst says. Dally advises investors to buy large caps, especially MetLife and Prudential Financial, since these insurers’ fundamentals are robust and their prospects rise as the economy progresses. Newark, New Jersey–based Prudential is boosting both return on equity and earnings per share, he says, on the back of significantly accretive transactions and equity-sensitive operations that benefit from the market’s strength. Meanwhile, New York–based MetLife is “delivering very strong, stable results on a consistent basis, which is not adequately reflected in the valuation today,” Dally asserts. — Carolyn Koo