On Wednesday, AXIS Capital Holdings Limited (NYSE:AXS) saw its stock price target increased by Keefe, Bruyette & Woods, a financial services company, from $70.00 to $75.00. The firm has maintained an Outperform rating on the insurance company's shares. The adjustment follows a detailed analysis of the company's year-end 2023 GAAP loss reserve triangles.
The review led Keefe, Bruyette & Woods to conclude that AXIS Capital's net reserves at the end of 2023 were likely overstated by approximately $690 million. This assessment suggests that the company's net reserve charges for the fiscal years 2024 and 2025 are expected to be very unlikely, providing a more favorable outlook for its financial performance in the coming years.
The new price target of $75.00 is anchored to 7.5 times the firm's estimated earnings per share (EPS) for the year 2025. The Outperform rating indicates that the analyst firm believes AXIS Capital's stock will perform better than the average return of the stocks that Keefe, Bruyette & Woods covers.
AXIS Capital Holdings Limited specializes in providing various insurance and reinsurance products and services around the world. The company's stock performance and financial health are closely monitored by investors and analysts alike, as changes in the insurance industry can have significant impacts on profit margins and risk management.
The updated stock price target and sustained positive rating from Keefe, Bruyette & Woods may influence investor sentiment and market activity related to AXIS Capital's shares in the near term. As of now, the company has not issued any public statement regarding the revised price target or the analyst's findings.
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