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On Monday, Raymond (NSE:RYMD) James made an adjustment to Atlas Crest Investment Corp’s (NASDAQ:ACIC) financial outlook, with analyst Greg Peters setting a new price target of $15.00, down from the previous $16.00. Currently trading at $11.16 with a market capitalization of $540 million, the stock maintains an attractive P/E ratio of 7.6x. Despite this reduction, the firm maintains its Outperform rating on the company’s shares. According to InvestingPro analysis, the stock is currently fairly valued based on its comprehensive Fair Value model.
Peters explained the rationale behind the price target adjustment, noting that it reflects a valuation of 10.4 times the firm’s estimated operating earnings per share (EPS) for the year 2026. He pointed out that Atlas Crest Investment Corp’s stock is currently valued at 7.7 times the estimated 2026 operating EPS, which is a significant factor in the revised target. InvestingPro data reveals the company maintains a "GREAT" overall financial health score, supported by strong profitability metrics.
The analyst emphasized that Atlas Crest Investment Corp warrants a valuation that is higher than its Florida property insurance peers, which trade at an average multiple of 9.2 times operating EPS. The company’s impressive 24% revenue growth and 31% return on equity over the last twelve months support this premium valuation. However, it should also be discounted compared to specialty insurers, which are currently valued at 14.7 times operating EPS.
Peters’ outlook for Atlas Crest Investment Corp is based on several key factors. He expects the company to achieve operating returns on equity (ROBEs) that surpass those of its peers, along with leading underwriting results. Additionally, the company’s focus on Florida property insurance plays a role in justifying its premium valuation compared to its state-specific peers.
The price target reduction comes as part of Raymond James’ ongoing analysis of the company’s financial performance and market position. The Outperform rating suggests that despite the lowered price target, Raymond James still sees potential for the stock to perform better than the overall market.
In other recent news, American Coastal Insurance Corporation (ACIC) reported its financial results for the first quarter of 2025, showcasing a net income of $21.3 million. The company experienced a 9% increase in net premium earned, reaching $68.3 million, despite a $3.7 million decrease in core income year-over-year. ACIC has launched a new apartment building insurance initiative aimed at Central and Northeast Florida, which is part of its strategic diversification efforts. The company also announced the renewal of its reinsurance program with increased protection and decreased rates. Policies in force have grown approximately 6% since the end of the previous year, highlighting ACIC’s resilience in a competitive market. Additionally, ACIC plans to enhance its catastrophe reinsurance program with a 16% increase in the first event limit and a 32% increase in aggregate protection. Raymond James analyst Greg Peters engaged with ACIC executives during a recent earnings call, focusing on the company’s strategic initiatives and reinsurance program. The company remains cautious in its growth strategy, emphasizing careful risk selection to maintain its strong market position.
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