Uxin shares drop 45% as predicted by InvestingPro’s Fair Value model
Investing.com - Raymond James lowered its price target on Everest Group (NYSE:EG) to $350.00 from $375.00 while maintaining an Outperform rating, citing a more cautious outlook for growth as the company repositions operations. This new target aligns closely with InvestingPro’s Fair Value assessment, which suggests the stock is currently slightly undervalued at its price of $314.52.
The reinsurance company’s stock has declined approximately 9% since reporting third-quarter 2025 operating earnings per share results below Raymond James’ estimates. InvestingPro data confirms this sharp decline, showing an 8.56% drop in the past week alone, with the stock now trading just 4% above its 52-week low of $302.44. The results reflected management actions to stabilize casualty reserves through an adverse development cover (ADC) and the disposal of retail insurance operations.
Everest Group announced the sale of renewal rights to its U.S., U.K., European, and Asia-Pacific commercial retail insurance book to AIG. The portfolio being transferred generates approximately $2 billion of gross written premium annually, representing a significant portion of Everest’s $17.68 billion in total revenue over the last twelve months. The renewal process will occur over 12 months starting January 1, 2026.
The company will receive $252 million for the U.S. renewal rights, $49 million for the Ireland renewal rights, a $30 million origination fee, and $10 million per month for nine months for transition services. Everest Group expects to recognize a $250-350 million pre-tax, non-operating charge across 2025-2026.
Everest Group also entered a comprehensive adverse development cover for its North America Insurance business, covering reserves for accident year 2024 and prior. The ADC provides $1.2 billion of coverage on approximately $5.4 billion of reserves, with Everest Group retaining $200 million of co-participation.
In other recent news, Everest Group reported its third-quarter 2025 earnings, which fell significantly short of expectations. The company’s earnings per share (EPS) were $7.54, considerably below the forecast of $14.31, representing a negative surprise of 47.31%. Revenue also missed projections, totaling $4.32 billion compared to the anticipated $4.45 billion. Following these results, Wolfe Research upgraded Everest Group’s stock rating from Underperform to Peerperform. This upgrade came after the company announced reserving actions of $539 million due to unfavorable developments in its North American Casualty Insurance and Other Segment. Additionally, Keefe, Bruyette & Woods adjusted its price target for Everest Group to $400.00 from $424.00, maintaining an Outperform rating. These changes reflect the firm’s updated year-end 2025 estimated book value per share. Everest Group’s recent developments have attracted significant attention from analysts and investors alike.
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