Analyst Michael Zaremski of BMO Capital maintained a Buy rating on Accelerant Holdings Class A, retaining the price target of $34.00.
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Michael Zaremski has given his Buy rating due to a combination of factors that highlight Accelerant Holdings Class A’s potential for valuation growth. A key element is the company’s ability to demonstrate substantial organic growth through Direct Commission Income, which is less capital-intensive and carries lower counterparty risk compared to growth in net earned premiums or ceding commission income. This focus on Direct Commission Income is crucial because it can elevate the stock’s valuation beyond its current peer-leading levels if Accelerant consistently sources a greater proportion of premiums directly from third-party carriers.
Furthermore, Accelerant has made notable strides in attracting third-party capital, with its mix of third-party carrier premiums increasing significantly from 0% in 2022 to 19% in the first quarter of 2025. This progress is largely attributed to partnerships with insurance carriers like Hadron and AmTrust, which play a significant role in Accelerant’s strategy for capital-light organic growth. The involvement of private-equity sponsor Altamont, which has substantial ownership in both Accelerant and Hadron, also suggests a strategic alignment that could further enhance Accelerant’s growth prospects.
In another report released on August 18, Raymond James also initiated coverage with a Buy rating on the stock with a $33.00 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.