Keefe, Bruyette & Woods raises Hanover Insurance Group price target to $190

Investing.com - Keefe, Bruyette & Woods raised its price target on The Hanover Insurance Group (NYSE:THG) stock to $190.00 from $188.00 on Wednesday, while maintaining an Outperform rating.

The price target increase follows Hanover’s second-quarter 2025 earnings report and subsequent conference call, with the new target representing 11.5 times KBW’s 2026 earnings per share estimate. According to InvestingPro data, four analysts have recently revised their earnings estimates upward for the upcoming period, suggesting growing confidence in the company’s outlook.

KBW revised its earnings per share estimates upward to $17.00 for 2025 and $16.50 for 2026, from previous forecasts of $15.50 and $16.35 respectively, while initiating a 2027 EPS estimate of $17.25.

The firm’s updated outlook incorporates Hanover’s second-quarter outperformance and assumes faster net investment income growth, lower core loss and catastrophe loss ratios, and larger reserve releases, partially offset by slower premium growth.

KBW believes the current market valuation underestimates Hanover’s personal lines margin improvement potential and the ongoing margin-expanding rate increases within its Core Commercial and Specialty segments, which focus on small and middle market businesses.

In other recent news, Hanover Insurance Group reported a strong performance for the second quarter of 2025, surpassing earnings expectations. The company announced earnings per share of $4.35, significantly above the forecasted $3.12, representing a surprise of 39.42%. Revenue also exceeded projections, reaching $1.65 billion compared to the anticipated $1.6 billion. These results highlight Hanover Insurance’s strong financial health and effective strategic initiatives. Investors responded positively to the news, reflecting confidence in the company’s performance. There have been no recent reports of mergers or acquisitions involving Hanover Insurance. Additionally, there were no new analyst upgrades or downgrades reported. These developments offer insights into Hanover Insurance’s recent performance and market positioning.

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