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Investing.com - Jefferies lowered its price target on RLI Corp . (NYSE:RLI) to $59.00 from $61.00 on Wednesday, while maintaining an Underperform rating on the insurance company’s stock. The stock, currently trading at $69.66, is near its 52-week low of $67.12, having declined 15.13% year-to-date. According to InvestingPro analysis, the stock appears slightly undervalued at current levels.
The firm cited expectations for a more tempered approach to growth in RLI’s casualty segment, where loss trends remain elevated and competition is emerging across the portfolio. Despite these challenges, RLI maintains strong fundamentals, with a 50-year track record of consecutive dividend payments and sufficient cash flows to cover interest payments.
Jefferies also noted that rate headwinds are pressuring RLI’s property segment, a trend the firm expects to continue for the remainder of the year.
While Jefferies kept its earnings per share estimates mostly unchanged in aggregate across 2025-2027, the firm lowered growth projections and deteriorated underlying margin expectations, with some offset coming from improved prior year development.
The firm’s 2026 earnings per share estimate for RLI now stands approximately 6% below the Street consensus.
In other recent news, RLI Corp announced its financial results for the second quarter of 2025. The company reported an earnings per share (EPS) of $0.84, surpassing analysts’ expectations of $0.79. Despite this positive earnings performance, RLI Corp’s revenue fell short of projections, coming in at $499.83 million compared to the anticipated $579.72 million. These mixed results highlight a stronger-than-expected earnings performance but a revenue miss that may be of concern to investors. The earnings report reflects the company’s ongoing financial challenges and successes in the current economic environment. Analysts continue to monitor these developments closely, providing insights for investors to consider. These recent developments are crucial for stakeholders evaluating RLI Corp’s financial health and market position.
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