Citizens JMP initiates Slide Insurance stock with Market Outperform rating

Investing.com - Citizens JMP initiated coverage on Slide Insurance Holdings (NASDAQ:SLDE) with a Market Outperform rating and a $25.00 price target on Monday. According to InvestingPro data, the company maintains a "GREAT" financial health score of 3.21, with a current P/E ratio of 1.96x and impressive revenue growth of 65.36% over the last twelve months.

The research firm cited Slide’s strong positioning to capitalize on the growing Florida residential property insurance market, which experienced dislocation following several active hurricane seasons and subsequent legislative reforms.

Founded in 2021, Slide Insurance is also expected to pursue opportunities in states beyond Florida, according to Citizens JMP analyst Matthew Carletti.

The firm noted that Slide shares currently trade at 3.2 times book value and 8 times projected 2026 earnings per share, with a forecasted 2026 return on equity of 29%.

Citizens JMP’s $25 price target represents 2.8 times the firm’s estimate of forward book value and approximately 10 times 2026 estimated earnings per share, compared to the primary group median of 2.0 times book value and roughly 6 times 2026 earnings with an average projected return on equity of 21%.

In other recent news, Slide Insurance Holdings has been the focus of several significant developments. The company recently announced the completion of its initial public offering (IPO), raising approximately $469.2 million in gross proceeds. This included the exercise of an option by underwriters to purchase an additional 3.6 million shares. However, Slide will not receive any proceeds from these additional shares sold by the selling stockholders. Meanwhile, Slide’s stock began trading at $21 per share, surpassing its initial IPO pricing of $17 per share. In terms of analyst coverage, Morgan Stanley (NYSE:MS) initiated coverage with an Equalweight rating and a $19 price target, highlighting Slide’s growth in the Florida homeowners market and its expansion potential. Piper Sandler also initiated coverage with an Overweight rating and a $25 price target, citing Slide’s technology-enabled insurance pricing as a competitive advantage. Both firms noted Slide’s potential for profitability, with Piper Sandler emphasizing the impact of recent tort reform in Florida. These developments underscore Slide’s strategic positioning and growth prospects in the insurance sector.

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