Old Republic stock target raised to $40 by Raymond James

Published 27/01/2025, 13:20
Old Republic stock target raised to $40 by Raymond James

On Monday, Old Republic International Corporation (NYSE:ORI) saw its price target increased by Raymond (NSE:RYMD) James from $38.00 to $40.00, with the firm maintaining an Outperform rating on the stock. The adjustment follows a period of positive performance, with the company's stock rising approximately 1% since the release of its fourth-quarter 2024 results, which surpassed both Raymond James' and the consensus estimates. Trading at $36.22, the stock has delivered an impressive 41.46% return over the past year. InvestingPro data shows the company maintains a "GREAT" financial health score of 3.17 out of 5.

The fourth quarter report highlighted an approximately 11% growth in consolidated net premiums and fees earned, along with better-than-expected underwriting results. These figures contributed to the firm's decision to enhance the price target for Old Republic's shares. The company's revenue growth reached 13.41% in the last twelve months, with a P/E ratio of 10.41, suggesting attractive valuation metrics.

Analysts at Raymond James have expressed confidence in Old Republic's potential for continued success, particularly within its specialty segment, which is anticipated to keep driving robust top-line growth and maintain stable results. Additionally, the title segment of the business is seen as a potential beneficiary of the housing market's recovery.

The firm's positive stance on Old Republic is further reinforced by the company's financial strategies, including its approach to capital management. Old Republic's practices, such as offering a stable dividend, occasional special dividends, and share repurchases, are seen as favorable for the stock's valuation. InvestingPro analysis reveals the company has maintained dividend payments for an impressive 55 consecutive years, with a current dividend yield of 2.93%. Additional insights about ORI's financial strength are available in the comprehensive Pro Research Report, covering over 1,400 US stocks.

Looking ahead, Raymond James anticipates that Old Republic will maintain an exceptional outlook over the next two years. This optimism is based on the expected ongoing strength of the specialty segment and the potential upside from the title segment as the housing market continues to recover. According to InvestingPro, the stock is trading near its 52-week high of $39.27, reflecting market confidence in its growth trajectory.

In other recent news, Old Republic International Corp delivered robust Q4 2024 earnings, surpassing analyst expectations with an earnings per share (EPS) of $0.90, compared to the forecasted $0.73. Despite missing the revenue forecast of $2.06 billion by reporting $2 billion, the company's net operating income saw a favorable increase to $227 million from the previous year's $190

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