Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - BMO Capital lowered its price target on Verisk Analytics (NASDAQ:VRSK) to $290.00 from $317.00 on Thursday, while maintaining a Market Perform rating on the stock. The current stock price of $275.47 is trading near its 52-week low, though InvestingPro analysis suggests the stock is currently overvalued.
The price target reduction follows Verisk’s quarterly results, where the company reported adjusted EPS that beat expectations due to margin strength. The company maintains impressive gross profit margins of 69.15%, with revenue growing at 7.2%. Total (EPA:TTEF) organic constant currency revenue growth remained stable sequentially, with accelerating Underwriting revenue growth offsetting slowing Claims growth. InvestingPro subscribers can access 12+ additional key metrics and insights about Verisk’s financial performance.
Verisk Analytics announced two acquisitions during the quarter, including AccuLynx for $2.3 billion. Management adjusted its 2025 guidance to account for these acquisitions, which are expected to be dilutive to 2025 adjusted EPS due to increased interest expense.
BMO Capital noted that while the acquisitions will negatively impact 2025 earnings, they are expected to become accretive by year-end 2026. This outlook influenced the firm’s decision to adjust estimates and lower its target price.
The firm maintained its Market Perform rating on Verisk stock despite the reduced price target, suggesting a neutral stance on the company’s near-term prospects.
In other recent news, Verisk Analytics Inc reported second-quarter earnings that surpassed analyst expectations, leading to a positive response in the market. The company posted adjusted earnings per share of $1.88, exceeding the analyst estimate of $1.77. Revenue for the quarter reached $773 million, surpassing the consensus estimate of $768.74 million and marking a 7.8% increase from $717 million in the same quarter last year. Additionally, Verisk raised its full-year revenue outlook, signaling confidence in its future performance. These developments are noteworthy for investors considering the company’s financial health. The positive earnings report and revised revenue guidance highlight Verisk’s strong position in the market. Analyst firms have taken note of these results, which may influence future evaluations and recommendations. These recent developments reflect Verisk’s ongoing growth and strategic direction in the industry.
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