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On Thursday, Jefferies analyst Andrew Andersen updated the firm’s outlook on Skyward Specialty Insurance Group (NASDAQ:SKWD), increasing the price target to $62.00 from the previous $61.00. The firm maintains a Buy rating on the company’s shares. The insurance provider, currently valued at $2.05 billion, has demonstrated strong momentum with a 40% return over the past year. According to InvestingPro analysis, the company maintains a "GREAT" financial health score of 3.7 out of 5. In his analysis, Andersen noted that the company’s quarterly performance aligned with its pre-announcement and that the guidance for 2025 was reaffirmed. Management anticipates completing underwriting actions in California by the end of the first quarter of 2025 and cited quarter-over-quarter fluctuations as the reason for the decrease in submission flow. The company’s solid financial position is reflected in its impressive revenue growth of nearly 30% over the last twelve months, with InvestingPro data showing a healthy current ratio of 1.95, indicating strong liquidity.
Andersen adjusted the growth and net investment income (NII) estimates slightly upwards, which resulted in approximately a 2% increase in the projected earnings per share (EPS) for the upcoming years. He continues to project mid-teens growth in gross written premiums (GPW) for 2025. The price target adjustment to $62 reflects an 18% potential return, as per Andersen’s analysis.
Skyward Specialty Insurance Group’s management’s expectations for the completion of underwriting actions in California is a significant development, as the company looks forward to stabilizing its operations. The analyst’s comments suggest a positive outlook on the company’s ability to manage its submission flows despite the quarterly variances.
The reaffirmation of the 2025 guidance provides investors with a steady outlook on the company’s financial trajectory. The slight tweaks in growth and NII estimates by Jefferies indicate a careful analysis of the company’s financials and a belief in its potential to deliver increased shareholder value.
The decision by Jefferies to maintain a Buy rating and raise the price target for Skyward Specialty Insurance Group is based on the firm’s detailed review of the company’s performance and expected future developments. The updated price target suggests that Jefferies sees a favorable investment opportunity in the company’s shares. Trading at a P/E ratio of 15.17, the stock appears reasonably valued relative to its growth prospects. For deeper insights into SKWD’s valuation and growth potential, investors can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports, available for over 1,400 US stocks.
In other recent news, Skyward Specialty Insurance Group Inc reported a strong financial performance for the fourth quarter of 2024. The company exceeded analysts’ expectations with an earnings per share (EPS) of $0.8, surpassing the forecasted $0.65. Revenue also outperformed projections, reaching $304.4 million compared to the anticipated $265.04 million. Skyward’s gross written premiums increased by 21% for the quarter, contributing to a full-year growth of 19%. The company also reported a full-year adjusted operating income of $2.87 per share, marking a 28% increase from the previous year. In addition to its financial achievements, Skyward launched new units in niche markets during the year and was ranked 9th among top-performing property and casualty companies by S&P Global. Furthermore, the company provided guidance for 2025, expecting net income between $138 million and $150 million, with gross written premium growth in the low to mid-teens. The company’s strategic focus on niche markets such as energy and life sciences has shown promising results.
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