Piper Sandler downgrades Kemper stock to Underweight on peak earnings concerns

Published 06/08/2025, 09:46
Piper Sandler downgrades Kemper stock to Underweight on peak earnings concerns

Investing.com - Piper Sandler downgraded Kemper Corp (NYSE:KMPR) from Overweight to Underweight on Wednesday, while significantly reducing its price target to $50.00 from $75.00. According to InvestingPro data, Kemper maintains a "GOOD" Financial Health score and has been profitable over the last twelve months, with a market capitalization of approximately $3.9 billion.

The research firm cited concerns about Kemper’s policies-in-force growth and underwriting profitability following the company’s second-quarter 2025 financial results.

Piper Sandler’s new price target of $50 represents a multiple of 10 times forward earnings estimates, reflecting a modest discount compared to industry peers currently trading at 11.1 times earnings. Currently, Kemper trades at a P/E ratio of 11.42x, while InvestingPro analysis suggests the stock is trading below its Fair Value.

The downgrade comes as the research firm reassessed its outlook on Kemper’s business fundamentals, with analysts now believing that 2025 may represent peak near-term earnings for the insurance provider.

The firm’s revised stance marks a substantial shift in its investment recommendation for Kemper, moving from a positive Overweight rating to a negative Underweight position. Despite the downgrade, the company has maintained dividend payments for 36 consecutive years, demonstrating long-term financial stability. Discover more insights about Kemper’s financial health and future prospects in the comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, Kemper Corporation reported its second-quarter 2025 earnings, which did not meet expectations. The company announced an earnings per share (EPS) of $1.30, which was below the anticipated $1.52, representing a 14.47% negative surprise. Revenue also came in slightly under projections at $1.23 billion, compared to the forecasted $1.24 billion. Despite these shortfalls in earnings and revenue, Kemper’s stock experienced a slight increase in after-hours trading. These developments are part of the recent updates concerning the company.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.