Street Calls of the Week
Investing.com - Wells Fargo upgraded Ryan Specialty Group (NYSE:RYAN) from Equal Weight to Overweight on Wednesday, maintaining a price target of $60.00. The specialty insurance broker, with a market capitalization of $13.87 billion, has shown resilient performance with 23.84% revenue growth over the last twelve months.
The upgrade comes after a recent pullback in Ryan Specialty Group shares, which now trade at a valuation on par with the rest of the brokerage peer group at 14.7x EBITDA. According to InvestingPro analysis, the stock is currently trading below its Fair Value, suggesting potential upside opportunity for investors.
Wells Fargo noted that since going public, Ryan has consistently traded at a premium to the brokerage peer group, suggesting the recent pullback provides an attractive entry point for investors. The stock has declined 26% over the past six months and is currently trading near its 52-week low of $50.08.
The firm expects Ryan’s organic growth to improve in Q3 due to lower property concentration, maintaining its leadership position in both growth and margins compared to industry peers.
Additional information about the sector could emerge on Thursday when AJG hosts its investor relations day, potentially providing more context on market conditions affecting specialty insurance brokers.
In other recent news, Ryan Specialty Group Holdings Inc. announced its second quarter 2025 earnings, which exceeded analyst expectations. The company’s revenue and earnings per share (EPS) both surpassed forecasts, marking a positive financial performance. Despite this, the stock experienced a decline of 2.09% in aftermarket trading, indicating investor concerns about the property market and leverage issues. This development underscores the complexity of investor sentiment even amid strong earnings reports. No updates on mergers or acquisitions were reported. Additionally, there were no recent analyst upgrades or downgrades noted for Ryan Specialty. These recent developments provide a snapshot of the company’s current financial landscape and investor reactions.
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