William Blair analyst Andrew Nicholas has maintained their bullish stance on VRSK stock, giving a Buy rating on October 21.
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Andrew Nicholas has given his Buy rating due to a combination of factors that highlight the resilience and potential of Verisk Analytics. Despite mixed third-quarter results, where revenue fell slightly short of expectations, the company demonstrated strong cost management. This was evident in its adjusted EBITDA, which aligned with projections and exceeded margin expectations. Additionally, the lower interest expenses contributed to an adjusted EPS that surpassed both the analyst’s and the Street’s estimates.
Furthermore, Nicholas acknowledges the robust organic growth in Verisk’s subscription services, which underscores the company’s core strength and momentum. While there are challenges, such as the decline in transactional revenue and external pressures like low severe weather events, these are seen as temporary. Nicholas views any negative market reaction as an opportunity, given Verisk’s strong competitive position, consistent growth, and margin expansion, which make it a compelling investment choice.
In another report released on October 21, RBC Capital also maintained a Buy rating on the stock with a $314.00 price target.