Goldman Sachs analyst Robert Cox upgraded Accelerant (ARX) to Buy from Neutral with a $19.50 price target which offers a 31% total return opportunity. While the shares could fall further in downside scenarios with significantly lower than consensus EBITDA, the stock’s risk/reward is attractive, the analyst tells investors in a research note. The firm says Accelerant’s valuation is approaching hybrid-fronting companies due to its lower third party insurer premiums. However, the company’s premiums with little catastrophe exposure position it well to grow in an environment where primary capacity providers face more limited growth opportunities. contends Goldman.
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