Analyst Bob Huang from Morgan Stanley maintained a Hold rating on Accelerant Holdings Class A and keeping the price target at $28.00.
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Bob Huang’s rating is based on a combination of factors observed in Accelerant Holdings’ recent earnings report. While the company’s adjusted net income exceeded expectations, total revenue fell short due to lower underwriting net earned premiums and revenues. The adjusted EBITDA margin was better than anticipated, largely because of reduced amortization of deferred acquisition costs in underwriting, although the loss ratio did not meet expectations.
Additionally, the growth in total members was consistent with projections, with independent members surpassing expectations, but mission and owned members lagging. While MGA operations showed strong performance with revenues and margins exceeding expectations, the underwriting segment underperformed with a higher loss ratio and lower revenue than anticipated. These mixed results contributed to the Hold rating, as there are areas of strength but also significant challenges that need to be addressed.
In another report released today, Wells Fargo also maintained a Hold rating on the stock with a $23.00 price target.