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.
Claim 50% Off TipRanks Premium and Invest with Confidence
- Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on ARX:
- Mixed Sentiment on Accelerant Holdings: Hold Rating Amid Growth and Structural Challenges
- Accelerant price target lowered to $21 from $33 at Raymond James
- Accelerant partners with AF Specialty to boost risk exchange capacity
- Accelerant price target lowered to $22.50 from $34 at BMO Capital
- Accelerant Holdings Class A: Strategic Shift and Strong Performance Justify Buy Rating