On Monday, Keefe, Bruyette & Woods maintained its Outperform rating and $86.00 shares target for AXIS Capital (NYSE:AXS) stock, following recent investor meetings with the company's top executives.
The firm expressed continued confidence in the management's capacity to drive robust, profitable premium growth amid favorable specialty P&C pricing conditions. This growth is expected to facilitate an expansion of the company's multiple and enhance its share price over the forthcoming year.
The analyst's outlook was bolstered by discussions with AXIS Capital's President and CEO Vincent Tizzio, CFO Peter Vogt, and Investor Relations head Cliff Gallant last week. These meetings highlighted the leadership's strategies and reinforced the firm's positive stance on the company's future performance.
Keefe, Bruyette & Woods projects that AXIS Capital will sustain its momentum and achieve strong premium growth, which in turn will contribute to an increase in the company's stock value.
The firm anticipates this growth trajectory to continue both during the current cycle of robust specialty property and casualty (P&C) insurance pricing and in the subsequent period.
The financial institution reiterated its earnings per share (EPS) estimates for AXIS Capital, maintaining its forecast at $10.25 for the year 2024 and $10.75 for 2025. These projections support the $86.00 price target, which is based on 8.0 times the firm's estimated 2025 earnings.
In summary, Keefe, Bruyette & Woods' position on AXIS Capital remains unchanged, with expectations of the company's share price rising over the next 12 months driven by strong management and favorable market conditions. The firm's Outperform rating and price target reflect a belief in the company's ability to capitalize on the current industry environment.
In other recent news, AXIS Capital Holdings Limited has reported substantial growth and profitability in the first quarter of 2024. Gross premiums written increased by 11% to $2.7 billion, and net income to common shareholders was reported at $388 million.
The company also announced a new share repurchase program, with the Board of Directors authorizing up to $300 million in buybacks of the company's common shares.
This is in addition to the existing $100 million share repurchase program, which still has $36 million available for repurchases. Keefe, Bruyette, & Woods maintained a positive stance on AXIS Capital, reiterating an Outperform rating.
The firm expressed confidence in the company's prospects, citing several factors that could contribute to a more favorable investor view of AXIS Capital. These recent developments highlight the company's strong financial performance and strategic initiatives aimed at enhancing shareholder value.
InvestingPro Insights
AXIS Capital's strategic initiatives and favorable market conditions have not gone unnoticed in the investment community. With management actively engaging in share buybacks and a strong track record of raising dividends for 21 consecutive years, the company's commitment to shareholder value is evident. According to InvestingPro Tips, AXIS Capital has not only maintained dividend payments for 22 consecutive years but is also expected to see net income growth this year, with 4 analysts revising their earnings upwards for the upcoming period.
InvestingPro Data further underscores the company's robust financial position, with a market capitalization of $5.79 billion and a P/E ratio that stands at an attractive 10.36. The company's P/E ratio adjusted for the last twelve months as of Q1 2024 is even more compelling at 9.65. Additionally, AXIS Capital's revenue growth has been steady, with a 9.69% increase over the last twelve months as of Q1 2024, signaling a positive outlook for the company's future performance.
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