Jefferies lowers Aspen Insurance stock price target to $38 on mixed growth outlook

Published 13/08/2025, 11:52
Jefferies lowers Aspen Insurance stock price target to $38 on mixed growth outlook

Investing.com - Jefferies lowered its price target on Aspen Insurance Holdings (NYSE:AHL) to $38.00 from $41.00 on Wednesday, while maintaining a Buy rating on the insurance company’s stock. Currently trading at $28.85, the company shows a modest P/E ratio of 5.2x, suggesting potential value according to InvestingPro data.

The price target reduction follows what Jefferies described as a quarterly "miss on growth" for Aspen, which the firm attributed to softening market conditions in short-term insurance lines.

According to Jefferies, Aspen expects to shift its growth focus toward long-term insurance lines, where market dynamics are considered more attractive for the company.

The research firm anticipates this strategic mix shift will drive higher underlying loss ratios for Aspen, while short-term lines continue to present a headwind to growth in the near-term.

Despite these challenges, Jefferies maintained its Buy rating on Aspen Insurance stock, adjusting its price target downward by $3 to reflect the revised growth outlook.

In other recent news, Aspen Insurance Holdings announced the pricing of a $300 million public offering of senior notes due 2030, with an interest rate of 5.750%. The company plans to use the proceeds to repay existing debt. Additionally, Aspen Insurance has appointed John Welch as Group Chief Underwriting Officer, who brings over 30 years of experience from companies like AXA XL and XL Catlin Group. In terms of analyst activity, Goldman Sachs lowered its price target for Aspen Insurance to $33, maintaining a Neutral rating and citing challenges in the specialty insurance and reinsurance markets. Wells Fargo initiated coverage with an Equal Weight rating and set a price target of $37, providing earnings per share estimates for the next three years. Meanwhile, Citi analysts began coverage with a Buy rating and a price target of $43, suggesting a positive outlook despite previous public challenges. These developments reflect a mix of strategic financial moves and varied analyst perspectives on the company’s future.

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