Beazley stock rating upgraded to Outperform by RBC Capital on strong ROE

Published 14/10/2025, 08:10
Beazley stock rating upgraded to Outperform by RBC Capital on strong ROE

Investing.com - RBC Capital has assumed coverage on Beazley PLC (LON:BEZ) with an Outperform rating and raised the price target to GBP11.00 from GBP10.00.

The insurance company, which operates the largest Lloyd’s syndicate, has demonstrated the best return on equity (ROE) track record in its sub-sector, according to RBC Capital’s analysis.

RBC Capital highlighted Beazley’s consistent growth through the last downcycle, although with more volatility than its peers, and noted its extensive network in Europe as a targeted area for growth in Specialty lines.

The firm also emphasized Beazley’s position as a global leader in Cyber insurance and its growth at its US on-shore carrier operation.

Even with below-consensus forecasts assuming flat earnings per share, RBC Capital finds Beazley’s multiples appealing at 1.6x FY25E tangible net asset value and 9x forward earnings, compared to the 1.5x multiple Radian is paying for start-up Inigo.

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