Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Raymond (NSE:RYMD) James has lowered its price target on Skyward Specialty Insurance Group (NASDAQ:SKWD) to $60.00 from $68.00 while maintaining a Strong Buy rating on the stock. According to InvestingPro data, the company maintains a "GREAT" financial health score of 3.29, with 4 analysts recently revising their earnings estimates upward for the upcoming period.
The stock has declined approximately 1% since reporting second-quarter 2025 results that exceeded both analyst estimates and consensus, partly due to headwinds from the company’s alternative asset portfolio. Since early June, SKWD shares have fallen about 23%, compared to the S&P 500’s 8% gain and a peer average decline of 7%.
Skyward reported gross written premium growth of 18% year-over-year in Q2 2025, with strong performance in agriculture & credit (+96%), captives (+24%), accident & health (+37%), and specialty programs (+44%). The company simultaneously reduced exposure in areas facing softening conditions or high loss inflation, including construction & energy (-6%) and global property (-5%).
The insurer’s underlying loss ratio improved 70 basis points year-over-year to 59.9% in Q2 2025, reflecting favorable conditions in shorter-tail lines including property and surety. Net investment income decreased 15% year-over-year to $18.6 million, impacted by mark-to-market losses in the alternative asset portfolio, particularly in private credit, oil & gas, and real estate.
Raymond James raised its operating EPS estimates for Skyward to $3.50 for 2025, $3.95 for 2026, and $4.30 for 2027, citing higher premium growth and improved underlying combined ratio results. The firm expects Skyward to maintain double-digit premium growth in 2025 and high single-digit growth in 2026 and 2027.
In other recent news, Skyward Specialty Insurance Group reported impressive financial results for the second quarter of 2025. The company achieved earnings per share of $0.89, significantly exceeding the forecasted $0.62. Additionally, Skyward Specialty’s revenue reached $584.93 million, far surpassing the expected $286.22 million. These strong earnings results have drawn attention from analysts and investors alike.
In terms of analyst activity, Keefe, Bruyette & Woods adjusted their price target for Skyward Specialty Insurance, lowering it to $63.00 from $69.00, while maintaining an Outperform rating. This adjustment was attributed to a shift in investor sentiment towards the broader property and casualty insurance sector, despite an increase in earnings per share estimates. Meanwhile, BMO Capital raised its price target for the company to $52.00 from $50.00, maintaining a Market Perform rating. These developments indicate a mixed but closely watched outlook for the company among investment firms.
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