Keefe, Bruyette & Woods raises Hamilton Insurance price target to $27

Published 12/08/2025, 15:58
Keefe, Bruyette & Woods raises Hamilton Insurance price target to $27

Investing.com - Keefe, Bruyette & Woods raised its price target on Hamilton Insurance Group (NYSE:HG) stock to $27.00 from $25.00 on Tuesday, while maintaining an Outperform rating on the shares.

The price target increase follows Hamilton’s second-quarter earnings beat, with KBW citing lower interest expense, higher investment earnings, and a lower catastrophe loss ratio as key factors driving the adjustment. According to InvestingPro data, the company maintains excellent financial health with a "GREAT" overall score and impressive revenue growth of 21.3% in the last twelve months.

KBW revised its earnings per share estimates for Hamilton to $3.78 for 2025, $4.42 for 2026, and $5.06 for 2027, up from previous forecasts of $3.19, $4.25, and $5.01, respectively. The company currently trades at an attractive P/E ratio of 6.2x, suggesting potential value opportunity. Get deeper insights into Hamilton’s valuation metrics and 6 additional exclusive tips with InvestingPro.

The new $27 price target represents 1.05 times book value and 6.1 times KBW’s 2026 earnings per share estimate, with the firm noting that Hamilton’s forecasted mid-teens return on equity warrants at least a 1x book value multiple.

KBW highlighted that while property rates are softening, Hamilton is actively deploying capital into hardening lines, including several casualty lines, which the firm believes present attractive return opportunities amid market dislocation.

In other recent news, Hamilton Insurance Group reported strong second-quarter 2025 results, with operating earnings per share of $1.55, surpassing both JMP Securities’ estimate of $1.09 and the consensus forecast of $1.05. This earnings beat was largely due to higher-than-expected net investment income of $149 million, driven by robust returns from the Two Sigma Hamilton Fund. Following these results, JMP Securities raised its price target for Hamilton Insurance Group to $29.00, maintaining a Market Outperform rating. Additionally, Hamilton Insurance Group announced several leadership changes, including the appointment of Adrian Daws as CEO of Hamilton Re and Alex Baker as CEO of Hamilton Global Specialty. Tim Duffin will also take on the role of Group Chief Underwriting Officer starting January 1, 2026. In other executive appointments, Russ Buckley was named Group Chief Risk Officer, and Raymond (NSE:RYMD) Karrenbauer was appointed as Group Chief Information Officer, effective September 15, 2025. These developments reflect ongoing strategic adjustments within Hamilton Insurance Group’s leadership team.

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