Baldwin Insurance price target lowered to $50 from $51 at BMO Capital

Published 13/06/2025, 14:36
Baldwin Insurance price target lowered to $50 from $51 at BMO Capital

BMO Capital lowered its price target on Baldwin Insurance (NASDAQ:BWIN) to $50.00 from $51.00 on Friday, while maintaining an Outperform rating on the stock. Currently trading at $39.22, the stock sits between its 52-week range of $31.47 to $55.82, with analyst targets ranging from $34 to $55.

The price target adjustment follows Baldwin’s recent deals with Hippo, which BMO Capital noted support the company’s commitment to its embedded homebuilder strategy and add capacity for Baldwin’s MGA business. According to InvestingPro data, Baldwin’s revenue grew 12.11% in the last twelve months, with the company maintaining a healthy current ratio of 1.13.

BMO Capital highlighted mixed updates from Baldwin at the BMO Insurance Summit, including "a somewhat less favorable IAS (middle market segment) organic growth outlook."

The research firm raised its 2025 EBITDA estimates to reflect the Hippo deal, but reduced its 2026 EBITDA estimates due to lower forward M&A projections.

Baldwin Insurance has maintained its Outperform rating at BMO Capital despite the slight reduction in price target from $51.00 to $50.00.

In other recent news, Baldwin Insurance reported its first-quarter 2025 earnings, revealing a slight earnings per share (EPS) beat while missing revenue forecasts. The company posted an EPS of $0.65, slightly above the forecasted $0.64, but its revenue of $413.4 million fell short of the anticipated $418.35 million. Despite the revenue miss, Baldwin Insurance saw a 12% year-over-year increase in adjusted EBITDA, reaching $113.8 million, and an 80-basis point margin expansion to 27.5%. The Underwriting and Consulting Technical Services (UCTS) segment experienced a significant 32% year-over-year organic revenue increase, driven by strong performance in the multifamily and home portfolios. However, the Insurance Agency Services (IAS) segment reported only a 3% organic revenue growth, below Raymond (NSE:RYMD) James’ expectation of 8%, due to a more competitive insurance rate environment. Raymond James maintained a Strong Buy rating on Baldwin Insurance but reduced the price target from $60.00 to $55.00. The company has also launched new products and acquired a platform to enhance its offerings, with guidance for the year remaining unchanged, expecting double-digit organic growth. Baldwin Insurance paid out $123 million in earn-outs during the first quarter and expects to pay another $22 million in the second quarter to settle most of its remaining obligations.

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