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On Wednesday, TD Cowen analyst Andrew Kligerman increased the price target for AXIS Capital (NYSE:AXS) to $130 from $127, while maintaining a Buy rating on the shares. Kligerman’s optimism is underpinned by the company’s solid growth prospects and sustainable underwriting performance, which were highlighted during a recent management meeting. The stock, currently trading near its 52-week high of $102.36, has demonstrated strong momentum with a 45% return over the past year. According to InvestingPro data, AXIS Capital maintains a perfect Piotroski Score of 9, indicating excellent financial strength.
AXIS Capital’s CEO Vince Tizzio and CFO Peter Vogt expressed confidence in the firm’s underwriting capabilities, noting improvements in the general and administrative (G&A) expense ratio, which is projected to reach 11% by fiscal year 2026. Despite a recent dip in property rates, they believe that pricing remains adequate across the property and casualty sectors. Additionally, insurance growth is anticipated to be in the mid- to high-single digits.
Kligerman’s valuation of AXIS Capital is based on a sum-of-parts approach. He pointed out that the stock is currently trading at 8.0 times its estimated 2026 earnings per share, compared to specialty insurance peers trading at 17.6 times and reinsurers at 6.2 times. According to the analyst, AXIS Capital’s insurance segment, which primarily focuses on specialty insurance, is expected to generate three-quarters of the company’s estimated profit for 2026.
The reaffirmation of the company’s robust underwriting and growth prospects during the management call has played a critical role in the analyst’s decision to raise the price target. AXIS Capital’s current valuation, as noted by Kligerman, presents a compelling investment opportunity when compared to its industry peers.
In other recent news, AXIS Capital Holdings Limited reported adjustments to its earnings per share (EPS) estimates for 2025 and 2026, following its first-quarter earnings report. Keefe, Bruyette & Woods raised the company’s 12-month price target to $118 and later to $120, maintaining an Outperform rating. The revised estimates reflect anticipated lower catastrophe losses and improved expense ratios, although they are offset by expectations of higher core loss ratios and decelerated premium growth. Additionally, AXIS Capital extended its $300 million secured letter of credit facility with Citibank Europe plc until March 31, 2027, ensuring continued financial flexibility. The company also announced an executive shift, with Global Corporate Controller Kent Ziegler resigning to pursue other opportunities, while CFO Peter Vogt temporarily assumes his responsibilities. Meanwhile, TD Cowen reiterated a Buy rating with a $127 price target, citing confidence in the company’s underwriting capabilities and reserve strength. The firm sees a 30% upside potential, noting that AXIS Capital is trading at a valuation attractive compared to its peers. These recent developments highlight AXIS Capital’s strategic initiatives and financial prospects.
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