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On Tuesday, Keefe, Bruyette & Woods analyst Meyer Shields adjusted the price target for AXIS Capital shares, listed on the New York Stock Exchange (NYSE:AXS), to $120 from the previous $118, while reiterating an Outperform rating on the stock.
During recent investor meetings with AXIS Capital’s CEO Vince Tizzio, CFO Pete Vogt, and IR/Corporate Development head Cliff Gallant, Shields gained further confidence in the company’s potential for consistent, profitable specialty property and casualty (P&C) premium growth. The meetings also highlighted the company’s focus on improving its expense ratio, generating low-volatility earnings, and deploying capital intelligently. These factors are expected to contribute to the stock’s multiple expansion over the next year and beyond.
Despite the optimism, Shields revised the estimated earnings per share (EPS) for 2025 downward to $11.05 from $11.45. This adjustment was primarily due to anticipated higher catastrophe losses in the first quarter of 2025, which are slightly balanced by quicker premium growth. Conversely, the estimated EPS for 2026 was increased to $12.65 from $12.45, reflecting the rapid premium growth that is anticipated to partly counterbalance the higher catastrophe losses.
The new price target of $120 is based on 9.5 times the projected 2026 earnings per share. Shields’ maintained Outperform rating implies that he expects AXIS Capital’s stock performance to be strong relative to the market or its industry peers over the next 12 months. The analyst’s comments and the updated price target reflect a positive outlook on the company’s strategic initiatives and financial prospects.
In other recent news, Axis Capital Holdings Limited reported significant developments impacting its financial landscape. The company has extended its $300 million secured letter of credit facility with Citibank Europe plc until March 31, 2027, maintaining the original terms. In a strategic move to enhance shareholder value, Axis Capital announced a $200 million stock repurchase from T-VIII PubOpps LP, managed by Stone Point Capital LLC. This transaction is part of the company’s existing $400 million share repurchase program. Additionally, Axis Capital has initiated a new $400 million share buyback program, replacing the previous $300 million plan, and declared a quarterly dividend of $0.44 per common share, payable in April 2025.
Analyst perspectives also highlight Axis Capital’s potential, with TD Cowen maintaining a Buy rating and seeing a 30% upside, supported by strong management discussions and attractive valuation metrics. Keefe, Bruyette & Woods raised its price target for Axis Capital to $118, citing confidence in the company’s reserve adequacy and increased earnings per share estimates for 2025 and 2026. These developments underscore Axis Capital’s ongoing efforts to manage capital effectively and maintain financial stability.
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