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With a market cap of $38.3 billion, Verisk Analytics, Inc. (VRSK) provides data analytics, risk management, and technology solutions. The New Jersey-based company serves customers across insurance, financial services, government, and risk management sectors.
Shares of this consulting service provider have underperformed the broader market over the past 52 weeks. VRSK has gained 15.9% over this time frame, while the broader S&P 500 Index ($SPX) has soared 27.6%. In 2024, shares of VRSK gained 12.8%, compared to SPX’s 17.7% return on a YTD basis.
Zooming in further, VRSK has lagged behind the S&P 500 EW Industrials Invesco ETF’s (RSPN) 19.9% gain over the past 52 weeks but has outpaced RSPN’s 11.1% return on a YTD basis.
Shares of VRSK sank 8.5% on Jul. 31 following the company’s mixed Q2 earnings release, where the earnings surpassed Wall Street estimates but fell short of revenue expectations. This was primarily driven by lower-than-expected underwriting and ratings revenue and claim revenue, coupled with the company's full-year sales guidance falling below consensus forecasts.
For the current fiscal year, ending in December, analysts expect VRSK’s EPS to grow 14.7% year over year to $6.55.The company’s earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing on one occasion.
Among the 17 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on six “Strong Buy” ratings, two “Moderate Buys,” and nine “Holds.”
The configuration is slightly more bullish than three months ago, with five analysts suggesting a “Strong Buy.”
On Aug. 16, Deutsche Bank maintained a “Hold” rating on Verisk Analytics and set a price target of $282, citing that the company is well-positioned to achieve its growth and margin targets, with potential for fundamental improvement in a favorable market environment.
The mean price target of $277.23 represents a premium of only 3.2% to VRSK’s current levels. The street-high price target of $305, implies a potential upside of 13.5% from the current price.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
