W.R. Berkley stock maintains Buy rating at UBS with $87 price target

Investing.com - UBS has reiterated its Buy rating for W.R. Berkley (NYSE:WRB) with a price target of $87.00, according to a research note published Tuesday. The insurance giant, currently valued at $27.87 billion, has shown strong momentum with a 27.88% year-to-date return. According to InvestingPro analysis, the company appears slightly undervalued based on its Fair Value calculations.

The firm expects "a neutral to modestly negative reaction" to W.R. Berkley’s third-quarter earnings report, citing slowing premium growth in the company’s Insurance segment and cautious commentary on the pricing environment. Despite these concerns, InvestingPro data reveals that nine analysts have recently revised their earnings estimates upward, and the company maintains an impressive 51-year streak of consecutive dividend payments.

UBS specifically noted concerns about the large commercial property market, suggesting that W.R. Berkley’s cautious tone on the commercial lines market could negatively impact near-term sentiment for major commercial lines insurers like AIG and CB.

The $87 price target represents approximately 16.4 times UBS’s projected 2027 earnings per share for W.R. Berkley.

The target also reflects 2.8 times UBS’s estimated third-quarter 2026 book value per share excluding accumulated other comprehensive income.

In other recent news, W.R. Berkley reported impressive third-quarter 2025 earnings, with an earnings per share (EPS) of $1.28, surpassing the forecasted $1.10. The company’s revenue also exceeded expectations, reaching $3.77 billion compared to the anticipated $3.16 billion. Despite these strong results, Wells Fargo lowered its price target for W.R. Berkley to $66 from $69, citing weaker growth due to a higher underlying loss ratio and lower investment income. Jefferies also adjusted its price target to $75 from $76, maintaining a Hold rating after W.R. Berkley’s EPS of $1.10 missed their estimate of $1.14. Meanwhile, Cantor Fitzgerald reiterated its Overweight rating with a price target of $82, suggesting a favorable position for W.R. Berkley compared to industry peers. These analyst actions reflect mixed sentiments, with some expressing concerns over growth while others remain optimistic about the company’s standing.

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