Bowhead Specialty resumed with an Outperform at RBC Capital

RBC Capital resumed coverage of Bowhead Specialty (BOW) with an Outperform rating and $33 price target as part of a broader research note launching coverage on P&C insurance carriers and brokers. Looking to 2026, the firm expects continued strong return on equity, ROE, and book value per share growth amongst carriers, though it also sees slowing top-lines limiting earnings growth, the analyst tells investors in a research note. Some earnings headwinds are emerging, with a softening P&C cycle, difficult catastrophe comps, and uncertain reserving driving RBC’s expectations for ROE compression and limited sector performance, the firm added. For the company, RBC is positive on Bowhead’s better underwriting margin and investment income assumptions.