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Investing.com - RBC Capital initiated coverage on Accelerant Holdings (NYSE:ARX) with an Outperform rating and a price target of $33.00. The insurance technology company, currently valued at $6.23 billion, trades at a P/E ratio of 2.49, according to InvestingPro data.
The firm highlighted the Accelerant Risk Exchange as a "unique asset" that offers a "compelling value proposition" to Managing General Agent (MGA) Members and Risk Capital Partners.
RBC Capital expects the Exchange to continue scaling rapidly while increasingly placing risk directly with reinsurance partners or institutional investors.
This growth trajectory should drive significant EBITDA growth for Accelerant, according to the analyst note.
The firm also anticipates consolidated margin expansion as the Exchange’s top-line revenue continues to scale.
In other recent news, Accelerant Holdings has priced its upsized initial public offering at $21 per share. The offering includes over 34 million Class A common shares, with a portion offered by the company and the remainder by existing shareholders. Shares are set to begin trading on the New York Stock Exchange, marking a significant step for the company. In terms of analyst coverage, BMO Capital initiated coverage on Accelerant with an Outperform rating, setting a price target of $34. The firm noted the company’s growth potential, emphasizing its insurance ecosystem business model. Meanwhile, Goldman Sachs started coverage with a Neutral rating and a $30 price target, highlighting Accelerant’s data-enabled risk exchange model. These recent developments provide investors with varying perspectives on Accelerant’s potential in the market.
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