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Investing.com - Keefe, Bruyette & Woods raised its price target on Hartford Financial Services (NYSE:HIG) to $137.00 from $135.00 on Monday, while maintaining an Outperform rating on the stock.
The price target increase follows Hartford Financial’s second-quarter 2025 earnings report and conference call, which showed stronger-than-expected performance. KBW cited this outperformance as a key factor in its decision to adjust forecasts.
The research firm raised its earnings per share estimates for Hartford Financial to $11.55 for 2025 and $13.05 for 2026, up from previous estimates of $11.00 and $12.85, respectively. KBW also introduced a 2027 earnings per share estimate of $13.85.
KBW’s updated outlook assumes larger reserve releases in 2026, lower catastrophe loss ratios, reduced expense ratios, and higher Corporate earnings. These positive factors are partially offset by expectations of slower premium growth, a higher 2026 core loss ratio, and lower earnings from Employee Benefits and Hartford Funds segments.
The firm expects Hartford Financial’s shares to rise over the next 12 months, driven by sustained premium growth, stable core underwriting margins, and ongoing share buybacks. The new price target represents a multiple of 10.5 times KBW’s 2026 earnings per share estimate.
In other recent news, Hartford Financial Services Group reported its second-quarter 2025 financial results, showcasing a notable performance. The company exceeded earnings per share (EPS) expectations, reporting an EPS of $3.41, which was 20.07% higher than the anticipated $2.84. However, Hartford experienced a slight revenue shortfall, with actual revenue reaching $6.99 billion, just below the forecasted $7.04 billion. Despite this minor revenue miss, the market responded positively, indicating investor confidence in Hartford’s financial health. The company’s strategic initiatives continue to be a point of interest for investors. Analysts have not provided recent upgrades or downgrades, but the positive earnings report has captured attention. These developments highlight Hartford’s ongoing efforts to maintain robust financial performance.
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