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Investing.com - Keefe, Bruyette & Woods lowered its price target on Everest Group (NYSE:EG) to $400.00 from $424.00 on Thursday, while maintaining an Outperform rating on the stock.
The price target reduction follows Everest Group’s third-quarter 2025 earnings report and subsequent conference call, with the new target representing 105% of the firm’s updated year-end 2025 estimated book value per share. According to InvestingPro data, Everest is currently trading at a Price/Book ratio of 0.98, suggesting the stock is valued below its book value.
The research firm reduced its earnings per share estimates for Everest Group to $47.90 for 2025, $52.80 for 2026, and $64.85 for 2027, down from previous forecasts of $51.10, $60.90, and $70.90, respectively. Despite these reductions, the broader analyst community remains somewhat optimistic, with a consensus EPS forecast of $51.43 for fiscal year 2025.
These revised estimates incorporate Everest Group’s third-quarter 2025 underperformance against analyst expectations and assume lower premium and investment income growth, partially offset by lower Insurance segment combined ratios and reduced share counts. The reduced share count aligns with InvestingPro data showing management has been aggressively buying back shares.
Despite expressing disappointment with the cost of Everest Group’s Adverse Development Cover (ADC) and preceding third-quarter reserve strengthening, Keefe, Bruyette & Woods expects the company’s improved medium-term Insurance segment profitability prospects to drive stock outperformance over the next 12 months.
In other recent news, Everest Group reported its third-quarter 2025 earnings, which significantly missed analysts’ forecasts. The company’s earnings per share (EPS) came in at $7.54, falling short of the expected $14.31, a surprising decrease of 47.31%. Revenue also did not meet expectations, totaling $4.32 billion compared to the anticipated $4.45 billion. Following these results, Wolfe Research upgraded Everest Group’s stock rating from Underperform to Peerperform. This upgrade occurred after Everest Group took reserving actions amounting to $539 million due to unfavorable developments in the North American Casualty Insurance and Other Segment. These reserving actions represent about 11% of the initial subject reserves, estimated at $4.9 billion. These recent developments have drawn significant attention from investors and analysts alike.
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