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Investing.com - Truist Securities raised its price target on Heritage Insurance (NYSE:HRTG) to $35.00 from $30.00 on Friday, while maintaining a Buy rating on the stock. The insurance provider, currently trading at $25.43 with a market capitalization of $746 million, has demonstrated remarkable strength with a 110% gain year-to-date.
The price target increase reflects Truist’s outlook for the stock to trade at 8 times its 2026 earnings estimate, which remains below the specialty property and casualty insurance group’s typical mid-teens multiple. Currently, the stock trades at an attractive P/E ratio of 7.34x, with analysts forecasting EPS of $4.26 for fiscal 2025. InvestingPro analysis reveals 8 additional key insights about Heritage’s valuation and growth prospects.
Truist cited increased visibility for lower reinsurance costs as a key factor influencing its more optimistic price target for the insurance provider.
The firm also noted prospects for stepped-up capital management activity at Heritage Insurance as contributing to its decision to raise the price target.
Truist’s analysts made the assessment following investor meetings with Heritage CEO Ernie Garateix and CFO Kirk Lusk, according to their research note.
In other recent news, Heritage Insurance Holdings Inc. reported its earnings for the second quarter of 2025, delivering an earnings per share (EPS) of $1.55, which exceeded analysts’ expectations of $0.98. Despite this earnings beat, the company’s revenue did not meet forecasts, recording $208 million compared to the anticipated $216.05 million. These mixed financial results have caught the attention of investors and analysts alike. The earnings report is a significant development for the company, as it highlights both strengths and areas for improvement. While the EPS performance was strong, the revenue shortfall indicates potential challenges in the market. Investors are advised to consider these factors when evaluating Heritage Insurance’s financial health. This recent development provides a clear picture of the company’s current financial standing.
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