VRSK - BofA upgrades Verisk after strong Q1 earnings stock gains 3%
2023-05-04 14:23:33 ET
Verisk ( NASDAQ: VRSK ) climbed as much as 3.3% on Thursday, marking its second consecutive day of gains, after the data analytics firm posted strong Q1 results , prompting Bank of America to upgrade the stock to Buy from Underperform.
"We think the shares look attractive here due to VRSK's defensive business model in an uncertain environment; accelerating sales growth, which drives our higher EPS outlook; and a more focused management and potential for higher returns following recent businesses exits," said analyst Heather Balsky.
BofA raised its 2023/24 EPS estimates for Verisk ( VRSK ) to $5.53/6.55 from $5.45/6.41 prior vs. $5.50/$6.41 consensus .
"Verisk ( VRSK ) is benefiting from a cyclical shift towards virtual claims and technology and automation investments in the P&C Insurance space, said Balsky.
As mounting losses push P&C insurers to cut costs, larger ones are generating most of their savings internally. BofA assumes they are also leveraging VRSK's tools.
Price target was raised to $243 from $167, implying 19.1% potential upside to its last close.
BofA's stance is in line with bullish sell-side ratings , but contrasts SA Quant's Hold rating .
Shares of Verisk ( VRSK ), which ended 7.9% higher on Wednesday after its earnings report, gained 17.1% YTD.
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BofA upgrades Verisk after strong Q1 earnings, stock gains 3%