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Investing.com - Wells Fargo initiated coverage on Accelerant Holdings (NYSE:ARX) with an Equal Weight rating and a $28.00 price target on Monday. The stock, currently trading at $28.33 with a market capitalization of $6.2 billion, is showing signs of being overvalued according to InvestingPro analysis.
The financial services firm described Accelerant as a "data-driven exchange that connects selected specialty underwriters with risk capital partners," noting that at approximately 23 times enterprise value to 2026 EBITDA, the stock appears fairly valued. The company’s current EV/EBITDA ratio stands at 133.7x, while maintaining a strong current ratio of 9x, indicating robust liquidity. InvestingPro analysis reveals additional insights, including an RSI indicating overbought territory - one of several exclusive ProTips available to subscribers.
Wells Fargo projects Accelerant’s earnings per share to reach $0.62 in 2025, $0.70 in 2026, and $0.90 in 2027, while EBITDA after consolidations and eliminations is expected to be $220 million in 2025, $271 million in 2026, and $355 million in 2027.
The $28 price target represents a 22.7x enterprise value to EBITDA multiple based on Wells Fargo’s 2026 EBITDA estimate for the company.
Wells Fargo assigned Accelerant a 50% premium compared to the large broker average excluding Willis Towers Watson, citing "outsized growth, strong margin expansion, and superior long-term margin profile" as justification, while noting the valuation still represents a discount to peers GoHealth and The Woodlands Financial Group.
In other recent news, several major financial firms have initiated coverage on Accelerant Holdings, highlighting its potential in the insurance sector. William Blair has rated Accelerant as Outperform, emphasizing the company’s strong value proposition within the Managing General Agent (MGA) channel. Piper Sandler has given an Overweight rating with a price target of $35.00, noting the company’s data-driven risk exchange model that connects specialty insurance underwriters with risk capital partners. RBC Capital also initiated an Outperform rating, citing the growth outlook and the unique value proposition of Accelerant’s Risk Exchange. Meanwhile, Morgan Stanley has assigned an Equalweight rating with a $28.00 price target, focusing on the company’s disruptive Risk Exchange platform. Citizens JMP has given a Market Perform rating, pointing out Accelerant’s role in addressing inefficiencies and fragmentation in the insurance market. These ratings reflect a range of perspectives on Accelerant’s strategic positioning and growth potential.
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