Analyst Bob Huang of Morgan Stanley maintained a Hold rating on Accelerant Holdings Class A, retaining the price target of $28.00.
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Bob Huang’s rating is based on a combination of factors impacting Accelerant Holdings Class A. The company’s recent 2Q25 earnings report showed a significant drop in valuation metrics such as NTM EV/EBITDA and NTM P/E ratios, which have made the stock more attractive compared to its peers. Despite the pressure on the stock price due to concerns about the Hadron relationship, the guidance for the upcoming quarter appears slightly better than expected, and growth prospects remain solid.
However, the investment thesis seems to be shifting towards the company’s ability to produce clean results and provide better disclosures on major partnerships. While Hadron has been a key contributor to Accelerant’s growth, the concentration risk associated with this partnership is expected to decrease as other partners like Tokio Marine and QBE begin to contribute more significantly. If management can achieve these goals, the current valuation could present an attractive opportunity.
In another report released on August 29, Wells Fargo also maintained a Hold rating on the stock with a $23.00 price target.
Based on the recent corporate insider activity of 10 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ARX in relation to earlier this year.