William Blair analyst Adam Klauber has maintained their bullish stance on PLMR stock, giving a Buy rating on April 21.
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Adam Klauber has given his Buy rating due to a combination of factors, including Palomar’s strong earnings beat in the first quarter and robust premium growth that significantly outpaced market expectations. He also points to the company’s superior underwriting performance, with a combined ratio that remains among the best in the property and casualty space, even when compared with a difficult prior-year period.
In addition, Klauber highlights management’s decision to modestly increase adjusted net income guidance, which he views as still prudent rather than aggressive, as well as the authorization of a sizable new share repurchase program. He believes that Palomar’s ability to sustain more than 20% growth in both revenue and earnings, alongside returns on equity above 25%, should underpin strong performance over the next several years, even as broader insurance market conditions become less favorable.
In another report released on April 21, KBW also maintained a Buy rating on the stock with a $186.00 price target.