Keefe, Bruyette & Woods upgrades Slide Insurance stock to Outperform

Investing.com - Keefe, Bruyette & Woods upgraded Slide Insurance Holdings (NASDAQ:SLDE) from Market Perform to Outperform and set a price target of $19.00.

The upgrade follows recent relative weakness in Slide’s stock compared to other Florida insurance peers, with KBW citing expectations for normal seasonal strength beginning in October. The stock has declined nearly 37% over the past six months, despite strong fundamentals including 47.5% revenue growth in the last twelve months.

KBW identified three specific near-term catalysts for Slide, including accretion from fourth-quarter 2025 Citizens policy takeouts, with the company approved for 175,000 policy takeouts while consensus models project only 20,000.

Property catastrophe reinsurance rate softening represents another catalyst, as XOL reinsurance costs amount to 25% of gross premium, with rates potentially decreasing 10-15% next year.

The firm also highlighted Slide’s $75 million buyback authorization as a positive factor, noting the stock trades at just 1.2 times KBW’s year-end 2026 book value estimate, with expected ROEs of 45% in 2025 and 30% in 2026.

In other recent news, Slide Insurance Holdings reported its second-quarter 2025 financial results, with operating earnings per share of $0.56, surpassing both JMP Securities’ estimate of $0.45 and the consensus estimate of $0.44. The company’s loss ratio was reported at 37%, which was lower than the anticipated 44%, attributed to favorable prior year reserve development and reduced catastrophe losses. Additionally, Slide Insurance’s Board of Directors has authorized a stock repurchase program of up to $75 million, effective immediately, with no time limit for its execution.

Barclays initiated coverage of Slide Insurance with an Overweight rating and a price target of $25.00, highlighting strong expected return on equity, favorable market dynamics in Florida, and the company’s scalable technology-driven underwriting platform. Piper Sandler adjusted its price target for Slide Insurance to $18.00 from $25.00, while maintaining an Overweight rating. JMP Securities reiterated its Market Outperform rating and $25.00 price target, maintaining a positive outlook on the company with minimal expected mark-to-market impacts on its book value for the current quarter. These developments reflect a mix of positive financial performance and varied analyst perspectives on Slide Insurance’s future prospects.

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