Barclays initiates Slide Insurance stock with Overweight rating on strong ROE outlook

Published 14/07/2025, 11:58
Barclays initiates Slide Insurance stock with Overweight rating on strong ROE outlook

Investing.com - Barclays (LON:BARC) initiated coverage on Slide Insurance Holdings (NASDAQ:SLDE) with an Overweight rating and a price target of $25.00 on Monday. The company, currently valued at $2.47 billion, has demonstrated impressive profitability with a P/E ratio of 1.96, according to InvestingPro data.

The research firm cited three key factors supporting its positive outlook: strong expected return on equity (ROE) performance, favorable market dynamics in Florida specialty homeowners insurance, and the company’s ability to scale operations through its technology-driven underwriting platform. InvestingPro analysis reveals the company has already achieved an impressive 62% ROE in the last twelve months, with robust financial health metrics and strong cash flows to support growth.

Barclays estimates Slide will maintain high ROEs as it expands geographically post-IPO, projecting 30% ROE for 2026 and 25% for 2027. The firm also forecasts 10% operating EPS growth in both 2026 and 2027.

The growth is expected to come as Slide continues to expand while capitalizing on operating leverage and benefiting from lower reinsurance costs, according to the research note.

The $25 price target represents approximately 30% upside from Slide’s July 11, 2025, closing price of $19.19, based on Barclays’ expectation that the insurer will maintain strong profitability while executing growth opportunities in additional states.

In other recent news, Slide Insurance Holdings announced that underwriters have exercised their option to purchase an additional 3.6 million shares of common stock, bringing the total gross proceeds from the IPO to approximately $469.2 million. The company will not receive any proceeds from this sale by the selling stockholders. Barclays and Morgan Stanley (NYSE:MS) served as joint book-running managers for the offering. In terms of analyst ratings, Citizens JMP initiated coverage on Slide Insurance with a Market Outperform rating and a $25.00 price target, highlighting Slide’s strong positioning in the Florida residential property insurance market. Piper Sandler also initiated coverage with an Overweight rating, citing Slide’s technology-enabled approach as a competitive advantage. Meanwhile, Morgan Stanley started coverage with an Equalweight rating and a $19.00 price target, noting Slide’s growth in gross written premiums. Keefe, Bruyette & Woods maintained a Market Perform rating with a $20.00 price target, indicating expectations of performance in line with the sector average. These developments reflect Slide Insurance’s ongoing expansion and strategic positioning in the market.

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