In a report released on May 2, Tom Mackinnon from BMO Capital maintained a Buy rating on Fairfax Financial Holdings (FRFHF – Research Report), with a price target of C$2,500.00.
Tom Mackinnon has given his Buy rating due to a combination of factors that highlight Fairfax Financial Holdings’ strong financial performance and growth potential. The company has demonstrated solid operating income visibility, supported by favorable prior year developments and consistent growth in book value per share (BVPS), which increased by 14% year-over-year in Q1 2025. This growth is further underscored by a conservative target multiple, reflecting a 12-13% estimated return on equity (ROE) going forward.
Additionally, Fairfax Financial Holdings has shown better-than-expected underwriting income, with a combined ratio of 98.5% compared to the estimated 100.5%, and net premiums growing by 8%, surpassing the 5% estimate. The company also reported substantial net investment gains, particularly in equities, and maintained strong liquidity with significant cash reserves. These factors, combined with reliable earnings growth from high-quality sources such as strong underwriting income and interest income, contribute to a positive outlook for Fairfax Financial Holdings, justifying the Buy rating.
In another report released on May 2, CIBC also maintained a Buy rating on the stock with a C$2,700.00 price target.
Based on the recent corporate insider activity of 81 insiders, corporate insider sentiment is neutral on the stock.