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Investing.com - Citizens analyst lowered the price target on AMERISAFE (NASDAQ:AMSF) to $60.00 from $65.00 on Tuesday, while maintaining a Market Outperform rating on the stock. Currently trading at $41.30, near its 52-week low of $40.17, the workers’ compensation insurance specialist maintains an impressive 11.94% dividend yield. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value metrics.
The price target reduction comes as Citizens expects AMERISAFE’s third-quarter 2025 results to feature lighter-than-typical catastrophe losses and modest mark-to-market book value tailwinds.
Despite the positive catastrophe loss outlook, Citizens noted potential for continued issues surrounding casualty loss reserves at the workers’ compensation insurance specialist.
The firm estimates AMERISAFE will see a book value increase of approximately 1.1% in the third quarter of 2025, placing it at the lower end of Citizens’ insurance coverage universe, which averages a 6.0% increase.
Citizens believes investor focus will be "zeroed in on the pricing environment" for AMERISAFE, as weakness in property insurance pricing has created broader market concerns.
In other recent news, AMERISAFE Inc. reported its financial results for the second quarter of 2025, showing a mixed performance. The company posted earnings per share of $0.53, which was slightly below the forecast of $0.55, resulting in a negative earnings surprise of 3.64%. Revenue also came in slightly lower than expected at $79.7 million, compared to the anticipated $79.87 million. Despite these misses, the company’s stock price rose in aftermarket trading, supported by strong product and operational updates. There were no major mergers or acquisitions announced in the recent period. Additionally, there were no reported analyst upgrades or downgrades affecting AMERISAFE. These developments provide investors with a snapshot of the company’s current financial position and recent activities.
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