On Monday, Piper Sandler showed confidence in shares of Skyward Specialty Insurance Group (NASDAQ:SKWD) by raising its price target to $58 from the previous $54 while maintaining an Overweight rating on the company's stock.
The revised target reflects an increased earnings multiple from 15.0x to 16.0x based on the firm's forward (2026E) earnings estimate of $3.60 per share. The company, currently valued at $2.15 billion, trades at a P/E ratio of 16.42, with InvestingPro analysis suggesting the stock is slightly overvalued at current levels.
The decision to adjust the price target upward comes as a response to Skyward Specialty's positive performance in the recent year, with the stock delivering an impressive 62.8% return over the past twelve months and showing strong revenue growth of 32.05%.
The analyst at Piper Sandler justified the new price target, indicating that the higher multiple is warranted due to the company's results that have outpaced those of its peers. InvestingPro data reveals 8 additional key insights about SKWD's performance and financial health that could impact your investment decision.
The Overweight rating suggests that Piper Sandler expects the company's stock to perform better than the average return of the stocks the firm covers over the next 12 to 18 months. This rating remains unchanged from the previous assessment, signaling a continued optimistic outlook on Skyward Specialty's financial prospects.
Skyward Specialty Insurance Group specializes in various insurance products and has been actively working to strengthen its position in the market. The insurance firm's efforts seem to be resonating well with analysts, as reflected in the recent price target adjustment.
Investors and stakeholders of Skyward Specialty Insurance Group may take note of the updated valuation as it implies a potential upside from the current trading price. The price target change is based solely on Piper Sandler's analysis and reflects their expectations for the company's future performance.
In other recent news, Skyward Specialty Insurance Group has been making significant strides in its financial performance and strategic planning. The company has secured a $57 million loan from the Federal Home Loan Bank of Dallas, a move indicative of its strategic financial planning.
Skyward Specialty also reported strong Q2 earnings and revenue, exceeding expectations, leading to an upward revision of price targets by several firms including Keefe, Bruyette & Woods, BMO Capital Markets, and JMP Securities.
In addition, Skyward Specialty formed a strategic joint venture with Bishop Street Underwriters, a subsidiary of RedBird Capital Partners (WA:CPAP), to enhance specialty property and casualty insurance offerings. This development is expected to expedite program development and address the needs of Managing General Agents.
On the analyst front, William Blair maintained an Outperform rating on Skyward Specialty, citing the company's strong outlook and potential to continue surpassing earnings forecasts. Meanwhile, Oppenheimer initiated coverage with a Perform rating, indicating a neutral stance on the company's near-term prospects.
BMO Capital also maintained its Market Perform rating on Skyward Specialty. These are the latest developments for Skyward Specialty, providing investors with a snapshot of the company's recent performance and strategic initiatives.
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