Travelers stock price target raised to $322 from $320 at Piper Sandler

Investing.com - Piper Sandler raised its price target on Travelers (NYSE:TRV) to $322.00 from $320.00 on Friday, while maintaining an Overweight rating on the insurance company’s stock. With a current P/E ratio of 10.6x and market capitalization of $58.3 billion, InvestingPro analysis suggests the stock is trading below its Fair Value.

The firm noted that Travelers delivered earnings that beat both consensus estimates and Piper Sandler’s own projections. The outperformance was primarily attributed to better-than-expected catastrophe losses, net investment income, and underlying results. The company maintains a "GREAT" financial health score according to InvestingPro metrics, with strong profitability indicators across key measures.

All business segments performed better than Piper Sandler had anticipated, with personal lines showing particularly strong results compared to forecasts. The insurance company demonstrated strength across its operations in the latest reporting period.

Despite the earnings beat, Piper Sandler observed that investor reaction suggested concerns about Travelers’ slow top-line growth, indicating the company might be prioritizing profitability over expansion.

The research firm also highlighted that additional share repurchases by Travelers should provide support to the company’s bottom line performance going forward.

In other recent news, Travelers Companies reported a strong performance for the third quarter of 2025, with earnings per share (EPS) reaching $8.14, surpassing the forecast of $6.15. The company’s revenue also exceeded expectations, totaling $12.47 billion compared to a forecast of $11.75 billion. Following these results, BofA Securities raised its price target for Travelers to $265 from $259, maintaining an Underperform rating. The firm noted that the earnings beat was largely due to better-than-expected underwriting results in the homeowners’ business segment. Meanwhile, Goldman Sachs adjusted its price target for Travelers to $302 from $320, while keeping a Buy rating. Goldman Sachs increased its earnings per share estimates for 2025, 2026, and 2027, citing improvements in share repurchases and Personal Insurance margins. These revisions were driven by a projected 2.5 percentage point improvement in Home Insurance underlying loss ratios for 2026 and 2027.

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