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Investing.com - Truist Securities has reiterated a Buy rating on Palomar Holdings (NASDAQ:PLMR), a $3.09 billion market cap insurer, with a price target of $168.00, following investor meetings with the company’s management in Denver. According to InvestingPro data, analysts maintain a bullish consensus with price targets ranging from $151 to $175, suggesting significant upside potential.
The meetings included Palomar’s CFO Chris Uchida and President Jon Christianson, who emphasized the company’s potential for sustained topline growth across its broad business portfolio. This optimism appears well-founded, as the company has achieved impressive revenue growth of 53% over the last twelve months and maintains a "GREAT" overall financial health rating according to InvestingPro analysis.
Management highlighted Palomar’s limited exposure to the commercial property and casualty insurance cycle, along with multiple levers including reinsurance, expense efficiency, and premium retention that should support faster bottom-line expansion.
Company executives also noted that lower interest rates could benefit residential earthquake insurance sales and casualty pricing, while Palomar should experience less pressure on investment income than its peers.
Truist Securities pointed out that Palomar’s price-to-earnings valuation currently sits at the low end of the property and casualty insurance group and the company’s own historical range.
In other recent news, Palomar Holdings reported impressive financial results for the second quarter of 2025, with earnings per share of $1.76, surpassing the expected $1.67. The company also exceeded revenue projections, reporting $496.3 million, which was 8.1% above estimates. Despite these strong earnings, several analyst firms have adjusted their price targets for Palomar. JPMorgan lowered its price target to $158, citing slower growth in the earthquake insurance segment. Keefe, Bruyette & Woods also reduced their target to $172, attributing the change to "unusual seasonality" affecting the results. Piper Sandler adjusted their target to $151 due to concerns over a higher-than-expected expense ratio, despite acknowledging the earnings beat. All three firms maintained positive ratings, with JPMorgan and Piper Sandler keeping an Overweight rating and Keefe, Bruyette & Woods maintaining an Outperform rating. These developments highlight ongoing investor interest and scrutiny following the company’s recent earnings report.
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