Intel stock spikes after report of possible US government stake
TD Cowen has maintained its Buy rating and $90.00 price target on Kemper Corp (NYSE: NYSE:KMPR), currently trading at $61.86, highlighting the insurer’s strong growth prospects in the non-standard auto insurance market. According to InvestingPro data, analyst consensus remains bullish, with price targets ranging from $75 to $90. The research firm recently hosted meetings with Kemper CEO Joseph Lacher and CFO Bradley Camden, who reaffirmed positive outlooks for the company’s combined ratio and policy growth.
The investment bank expects Kemper to achieve policy-in-force growth exceeding 10% in 2025, while maintaining combined ratios of 93.4% in 2025 and 94.1% in 2026. With a solid P/E ratio of 12.25 and annual revenue of $4.69 billion, TD Cowen noted that Kemper’s position as a leader in the non-standard auto market places it ahead of smaller competitors in both profitability and growth potential. InvestingPro analysis shows the company maintains a "GOOD" financial health score, supporting its market leadership position.
Kemper’s combined ratios are projected to remain solid, gradually moving toward historical ranges of 93-95% in the coming years compared to the 92.7% reported in the first quarter of 2025. The firm’s analysis suggests Kemper is well-positioned for continued profitable growth in its core markets.
TD Cowen believes Kemper could sustain up to 13% annual policy-in-force growth during hard market conditions, while still achieving 5-6% growth in softer market environments. This growth trajectory supports the firm’s continued positive outlook on the insurance company.
The research note identifies Kemper as one of TD Cowen’s "Best SMIDCAP Ideas," emphasizing the insurer’s strong performance metrics and market positioning in the non-standard auto insurance segment. InvestingPro analysis suggests the stock is currently undervalued, with additional ProTips available for subscribers. Get access to the comprehensive Pro Research Report and more detailed insights through an InvestingPro subscription.
In other recent news, Kemper Corporation reported its first-quarter 2025 earnings, with earnings per share (EPS) of $1.65, surpassing the expected $1.49. Despite this strong profitability, the company’s revenue of $1.19 billion fell short of the anticipated $1.22 billion. The company highlighted a 24% growth in written premiums and a 14% increase in policies in force, demonstrating significant business expansion. Additionally, Kemper’s debt-to-capital ratio improved to 22.9%, reflecting enhanced financial health.
Shareholders approved an amended stock incentive plan during Kemper’s annual meeting, increasing the authorized shares for issuance by 625,000. This plan is part of Kemper’s long-term strategy to provide equity-based compensation. All ten nominees for the board of directors were elected, and Deloitte & Touche LLP was ratified as the independent registered public accounting firm for 2025.
Analysts from firms such as Raymond (NSE:RYMD) James and Piper Sandler raised questions about market conditions, particularly in states like California, Florida, and Texas, where Kemper anticipates continued growth. The company expressed confidence in navigating potential tariff impacts and maintaining profitability. These developments reflect Kemper’s strategic efforts to strengthen its market position and financial stability.
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