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On Tuesday, AXIS Capital Holdings Limited (NYSE:AXS) saw its 12-month price target increased to $118 from $114 by Keefe, Bruyette & Woods, with the firm maintaining an Outperform rating on the stock. The revision follows AXIS Capital’s first-quarter earnings report for 2025.
The firm’s analysts have adjusted their earnings per share (EPS) estimates for the years 2025 and 2026 to $11.25 and $12.70 respectively, up from the previous figures of $11.05 and $12.65. The new estimates take into account a combination of factors including anticipated lower catastrophe losses, improved expense ratios, and larger reserve releases. These positive factors were partly balanced by projections of lower net investment income, higher core loss ratios, and a deceleration in premium growth for 2025. The company maintains a strong financial position with a perfect Piotroski Score of 9, as reported by InvestingPro.
The analysts expect AXIS Capital’s valuation gap with its specialty-focused peers to narrow as the company continues to deliver robust and stable underwriting results. The price target is based on 9.3 times the firm’s updated 2026 estimated EPS. Currently trading at a P/E ratio of 9.79, the stock has delivered an impressive 52.55% return over the past year.
AXIS Capital’s financial performance and strategic execution were highlighted as reasons for the positive outlook. The firm’s ability to manage underwriting volatility effectively seems to be a contributing factor to the analyst’s confidence in the stock’s future performance.
Investors in AXIS Capital may find this update indicative of the company’s solid execution and potential for continued growth in the specialty insurance and reinsurance sectors. The updated price target suggests a positive view of the company’s operational strategy and financial health.
In other recent news, AXIS Capital Holdings Limited has announced several key developments. The company disclosed the upcoming departure of Kent Ziegler, its Global Corporate Controller and principal accounting officer, effective May 1, 2025. In the interim, CFO Peter Vogt will assume Ziegler’s responsibilities without additional compensation. Meanwhile, Keefe, Bruyette & Woods analyst Meyer Shields has raised the price target for AXIS Capital to $120, maintaining an Outperform rating, based on insights from recent investor meetings and anticipated premium growth. Shields has also adjusted the EPS estimates for 2025 and 2026, reflecting expectations of higher catastrophe losses and rapid premium growth.
Additionally, AXIS Capital has extended its $300 million credit facility with Citibank Europe plc until March 31, 2027, ensuring continued financial flexibility. Another analyst, Andrew Kligerman from TD Cowen, reiterated a Buy rating on AXIS Capital, citing a 30% upside potential based on the company’s attractive valuation and strong underwriting capabilities. Kligerman’s analysis highlights AXIS Capital’s insurance segment’s expected earnings contribution in 2026, supporting a positive outlook.
Furthermore, Shields had previously raised the price target to $118, also maintaining an Outperform rating, after reviewing the company’s 2024 GAAP reserve triangles. This review led to increased EPS estimates for 2025 and 2026, driven by reserve releases and share repurchases. These recent developments provide investors with a detailed view of AXIS Capital’s strategic initiatives and financial outlook.
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