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Tuesday - Goldman Sachs analyst has upgraded Ryan Specialty Group (NYSE: RYAN) from Neutral to Buy, increasing the price target (PT) to $81.00 from $74.00. The firm cited the company’s potential for organic growth, revenue expansion, and margin improvement as key drivers for the positive outlook on the stock. With a market capitalization of $18.14 billion, InvestingPro analysis indicates the company is currently trading near its Fair Value, while maintaining a "GOOD" overall financial health rating.
Ryan Specialty Group, a prominent player in the insurance brokerage industry, has been recognized by Goldman Sachs for its ability to outperform peers in terms of growth and profitability. This assessment is supported by the company’s impressive 22.53% revenue growth over the last twelve months and a strong five-year revenue CAGR of 26%. The analyst pointed out that despite the near-term cyclical pressures affecting the property pricing segment, Ryan Specialty is expected to demonstrate superior organic growth and total revenue growth compared to its competitors.
While acknowledging the risks to the company’s second quarter of 2025 organic growth due to pressures in Excess & Surplus (E&S) property pricing, Goldman Sachs anticipates that investor expectations are aligning more closely with their own projections. The analyst suggests that investors are likely to look ahead to the second half of 2025 and beyond, where Ryan Specialty is poised to maintain a significant organic growth advantage over retail insurance brokers.
The upgrade reflects a belief that any potential shortfall in Ryan Specialty’s second quarter organic growth will be supported by investors with a long-term perspective. Conversely, any positive surprises could lead to a strong market response, given the challenging comparisons the company faces this year.
Goldman Sachs’ revised 12-month target price represents a 9% increase from the previous target, indicating a 17% total return opportunity for Ryan Specialty Group shares. This adjustment is based on the firm’s confidence in the company’s fundamental strengths and competitive positioning in the market. Analyst targets currently range from $56 to $89, with InvestingPro offering additional exclusive insights through its comprehensive Pro Research Report, one of 1,400+ detailed analyses available to subscribers.
In other recent news, Ryan Specialty Holdings, Inc. announced its first-quarter earnings, which aligned with analyst expectations. The company reported adjusted earnings per share of $0.39, matching projections, while revenue increased by 25% year-over-year to $690.2 million, surpassing the consensus estimate of $683.49 million. Despite these positive indicators, Ryan Specialty experienced a net loss of $4.4 million, a shift from the previous year’s net income of $40.7 million. The loss was primarily attributed to a higher income tax expense stemming from a legal entity reorganization. Organic revenue growth was reported at 12.9% year-over-year, driven by new client acquisitions and expanded relationships with existing clients. Adjusted EBITDAC saw a 27.5% increase, reaching $200.5 million. The company maintained its full-year 2025 outlook for organic revenue growth between 11-13% and an adjusted EBITDAC margin of 32.5-33.5%. Additionally, Ryan Specialty declared a quarterly dividend of $0.12 per share, payable on May 27 to shareholders of record as of May 13.
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