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Investing.com - BMO Capital initiated coverage on Accelerant Holdings (NYSE:ARX), currently trading at $28.33 with a market capitalization of $6.23 billion, with an Outperform rating and a $34.00 price target on Monday. According to InvestingPro data, the stock’s RSI indicates overbought territory.
The firm described Accelerant as an "insurance ecosystem" with a three-pronged business model that includes a fee-generating insurance risk exchange, insurance originators known as managing general agents (MGAs), and insurance carrier balance sheets bearing risk. The company maintains strong liquidity with a current ratio of 8.97, indicating robust financial health.
BMO Capital noted that Accelerant has historically relied heavily on its own balance sheet to support growth, creating potential limitations on expansion.
The firm believes Accelerant is now positioned to onboard third-party insurance carriers, which BMO views as "critical" to achieving growth and margin expansion plans.
The $34.00 price target reflects BMO’s confidence in Accelerant’s business model and future growth trajectory as it diversifies its risk-bearing capacity beyond its own balance sheet.
In other recent news, Accelerant Holdings has priced its upsized initial public offering at $21.00 per share. The offering includes 34,461,152 Class A common shares, with Accelerant offering 20,276,280 shares and existing shareholders selling 14,184,872 shares. The company’s shares are set to begin trading on the New York Stock Exchange under the symbol "NYSE:ARX." Additionally, Goldman Sachs has initiated coverage on Accelerant Holdings with a Neutral rating and a $30.00 price target. The firm noted Accelerant’s data-enabled risk exchange model, which connects specialty insurance underwriters with insurers, reinsurers, and institutional investors. These developments mark significant milestones for Accelerant Holdings as it enters the public market and gains attention from major financial analysts.
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