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On Monday, Keefe, Bruyette & Woods (KBW) increased the price target for Skyward Specialty Insurance Group (NASDAQ:SKWD) to $62.00, up from the previous target of $60.00, while retaining an Outperform rating on the company’s stock. The adjustment comes in response to Skyward Specialty’s robust fourth-quarter earnings for the year 2024, which were discussed in a recent earnings call.
The firm’s analyst cited the company’s solid performance as the basis for the price target increase. The revised target is set at 15.3 times the estimated 2026 earnings per share (EPS). Additionally, the firm’s EPS estimates for the years 2025 and 2026 have been raised to $3.45 and $4.05, respectively, from the former estimates of $3.40 and $4.00. This optimism is supported by the company’s impressive 29.82% revenue growth and strong market performance, with a 42.34% return over the past year. The adjustments reflect expectations of slightly faster growth in premiums and investment income, coupled with lower expenses.
Skyward Specialty’s strong gross written premium (GWP) and investment income growth are anticipated to be key drivers of EPS expansion in 2025 and beyond. Furthermore, the company is expected to maintain consistently conservative loss ratios without significant reserve charges, which should contribute to the growth trajectory of the EPS.
The analyst’s outlook suggests a positive trend for Skyward Specialty’s shares over the next 12 months, supported by the company’s financial growth and sound management of expenses and income. The new price target and optimistic rating highlight the firm’s confidence in Skyward Specialty’s ongoing performance and future prospects in the insurance industry.
In other recent news, Skyward Specialty Insurance Group reported strong fourth-quarter 2024 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $0.8, compared to the forecasted $0.65. The company’s revenue also exceeded projections, reaching $304.4 million against a forecast of $265.04 million. This robust financial performance reflects Skyward’s strategic focus on expanding its product offerings and maintaining a diversified portfolio. Additionally, Jefferies raised its price target for Skyward to $62 from $61, maintaining a Buy rating, following the company’s positive quarterly performance and reaffirmed guidance for 2025. Jefferies analyst Andrew Andersen noted a slight upward adjustment in growth and net investment income estimates, resulting in a 2% increase in projected EPS for the coming years. In contrast, Wolfe Research downgraded Skyward from Outperform to Peer Perform, citing the company’s trading multiples and risk-return profile. Wolfe Research set a year-end 2025 fair value range for Skyward at $50 to $59, based on revised EPS estimates for 2026. These developments highlight the varied analyst perspectives on Skyward’s financial outlook and investment potential.
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