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Investing.com - Barclays (LON:BARC) initiated coverage on Ategrity Specialty Insurance (NYSE:ASIC), currently trading at $21.13 and near its 52-week low of $20.20, with an Overweight rating and a price target of $30.00, representing potential upside of approximately 45% over the next 12 months.
The research firm cited three key factors supporting its positive outlook: significant profitable growth potential, expected return on equity improvement driven by operating leverage and a declining expense ratio, and a favorable view of the small commercial segment within the excess and surplus lines market. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 1.53 and minimal debt exposure.
Barclays forecasts Ategrity’s gross written premium growth of 28% in 2025 and 30% in 2026, with net written premium growth approaching 45% as the company retains more business following its initial public offering.
The firm expects Ategrity’s return on equity to improve from 13.4% in 2024 to nearly 17% by 2027 as scale benefits enhance underwriting margins.
The $30 price target reflects Barclays’ confidence in Ategrity’s ability to execute its growth strategy while delivering improving profitability in the specialty insurance sector.
In other recent news, Ategrity Specialty Insurance made a notable entrance on the New York Stock Exchange, with its shares opening at $23.65 after an initial public offering priced at $17.00 per share. This IPO involved 6,666,667 shares of common stock, expected to generate approximately $113.3 million in gross proceeds for the company. The underwriters, led by J.P. Morgan and Barclays, have a 30-day option to purchase up to an additional 1,000,000 shares at the IPO price.
In related developments, JPMorgan initiated coverage on Ategrity Specialty Insurance with an Overweight rating, setting a price target of $26.00 for December 2026. The investment bank cited Ategrity’s strong growth trajectory in the specialty insurance sector and its technology-driven platform as key differentiators. Despite acknowledging some risks, such as Ategrity’s limited operating history and above-average credit risk, JPMorgan believes these are already reflected in the current stock valuation. The firm expressed confidence in the management’s alignment with shareholders, supporting Ategrity’s business execution capabilities.
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