Goldman Sachs initiates coverage on Accelerant Holdings stock with Neutral rating

Published 18/08/2025, 07:52
Goldman Sachs initiates coverage on Accelerant Holdings stock with Neutral rating

Investing.com - Goldman Sachs initiated coverage on Accelerant Holdings (NYSE:ARX) with a Neutral rating and a $30.00 price target on Monday. According to InvestingPro data, the company currently trades at $28.33, with a market capitalization of $6.23 billion. The stock’s RSI indicates overbought conditions.

The firm highlighted ARX’s data-enabled risk exchange model that connects specialty insurance underwriters with insurers, reinsurers, and institutional investors, creating value for all participants.

Goldman Sachs projects strong growth for the company, forecasting 27% gross premiums written and 50% adjusted EBITDA compound annual growth rates from 2024 to 2027, with underwriting margins exceeding industry standards.

The investment bank noted ARX’s proprietary technology enables automated portfolio monitoring and delivers actionable insights to underwriters, helping the company gain market share in the global SME business insurance marketplace.

Despite these positive factors, Goldman Sachs identified several risk elements in ARX’s business model, including underwriting risk, capital requirements, and the need to shift premiums to third-party insurance carriers, leading to its conclusion that the stock is reasonably valued at current levels.

In other recent news, Accelerant Holdings has announced the pricing of its upsized initial public offering at $21.00 per share. The offering includes a total of 34,461,152 Class A common shares. Of these, 20,276,280 shares are being offered by Accelerant itself, while 14,184,872 shares are being sold by existing shareholders. The shares are set to begin trading on the New York Stock Exchange under the ticker symbol "NYSE:ARX." The offering is expected to close on July 25, 2025, pending customary closing conditions. This development marks a significant step for Accelerant as it enters the public market.

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