Analyst Jeffrey Silber of BMO Capital maintained a Hold rating on Verisk Analytics (VRSK – Research Report), boosting the price target to $241.00.
Jeffrey Silber’s rating is based on a balanced view of Verisk Analytics’ recent performance and future prospects. The company’s adjusted earnings per share (EPS) for the first quarter of 2024 surpassed expectations, which was largely attributed to improved margins and a favorable tax rate. Growth in both subscription and transactional revenue showed acceleration, indicating a robust demand within its property and casualty (P&C) client base. Additionally, Verisk began to witness positive developments in certain areas such as marketing solutions and platform upgrades. Despite these positive signs, Silber maintains a cautious stance, as the company’s management has not altered its full-year guidance, although their tone suggested increased confidence compared to previous quarters.
Contributing to the Hold rating is Verisk’s solid subscription growth, with specific segments like Anti-Fraud Analytics transitioning successfully to a subscription model. The transactional side also saw growth, despite some challenges. The company’s adjusted EBITDA margins have expanded, and while the outlook for 2024 remains unchanged, management projects strength in insurer clients’ financial positions, which could lead to efficiency gains facilitated by Verisk’s services. Silber slightly raised his estimates and target for Verisk, acknowledging its leading margins and strong management. However, he advises caution due to the stock’s valuation and the potential impact of new investment cycles.
Based on the recent corporate insider activity of 61 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of VRSK in relation to earlier this year.
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Verisk Analytics (VRSK) Company Description:
Incorporated in 1971, New York-based Verisk Analytics, Inc. provides data analytics solutions for customers in insurance, energy markets and financial services. The company operates through three segments: Insurance, Energy & Specialized Markets, and Financial Services.
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