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Investing.com - Keefe, Bruyette & Woods has raised its price target on Everest Group (NYSE:EG) to $416.00 from $405.00 while maintaining an Outperform rating on the stock.
The price target adjustment follows Everest Group’s second-quarter 2025 earnings report and conference call, with the new target representing 110% of the firm’s updated year-end 2025 estimated book value per share.
KBW has increased its 2025 earnings per share estimate to $48.05 from $46.45, reflecting the company’s second-quarter outperformance relative to previous estimates.
The firm simultaneously lowered its 2026 and 2027 EPS estimates to $60.90 and $70.90 from $61.50 and $71.70, respectively, based on assumptions of slower premium growth and higher expense ratios, partially offset by lower core and catastrophe loss ratios.
Despite noting short-term expense ratio pressure, KBW expects Everest Group’s management’s "aggressive remediation approach" to provide a clear path toward adequate Insurance segment underwriting profits and subsequent solid profitable premium growth. The stock currently trades near its 52-week low of $320, potentially presenting an opportunity for value investors.
In other recent news, Everest Group has made several significant appointments to its leadership team and board of directors. Jill Beggs has been promoted to Executive Vice President and CEO of Reinsurance, where she will continue to drive the company’s global reinsurance strategy. Pamela Sinclair has been named the new Chief Human Resources Officer, succeeding Gail Van Beveren, who is retiring after 39 years. Sinclair joins Everest with extensive experience in human capital strategies, having previously served at PGIM.
Additionally, Everest Group has strengthened its board by appointing Allan Levine and Darryl Page as independent, non-executive members. Levine brings over three decades of experience from his role as Co-Founder and Executive Chairman of Global Atlantic, while Page adds his extensive expertise from his time at Chubb (NYSE:CB) and other leading insurers. In a notable development for investors, Janney has initiated coverage of Everest Group with a buy rating, citing a rebound outlook and setting a fair value estimate of $425.00. Janney highlighted Everest’s strong performance record, with a median operating ROE of 12% and consistent growth in shareholder value. These recent developments reflect Everest Group’s strategic focus on leadership and market positioning.
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