AXIS Capital Downgraded by BofA, Price Target Cut to $115
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 06 2026
0mins
Source: Benzinga
- Rating Downgrade: Bank of America Securities downgraded AXIS Capital's rating from Buy to Neutral and cut the price target from $116 to $115, indicating potential challenges in pricing trends over the next two years, which may affect investor confidence.
- Earnings Forecast Reduction: The analyst noted that AXIS Capital's earnings estimates for 2026 and 2027 are below consensus due to rising acquisition costs and less favorable reserve development, which could limit the company's future profitability.
- Decreased Underwriting Transparency: As managing general agent (MGA) risks and contract-binding business increase in proportion to underwriting, AXIS's underwriting transparency is expected to decline, potentially impacting investor confidence in the company's risk management capabilities.
- Stock Price Volatility: At the time of publication, AXIS Capital's shares fell by 3.1% to $102.24, reflecting the market's negative reaction to the downgrade, which may affect the company's short-term market performance.
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Analyst Views on AXS
Wall Street analysts forecast AXS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AXS is 120.14 USD with a low forecast of 110.00 USD and a high forecast of 133.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
5 Buy
2 Hold
0 Sell
Moderate Buy
Current: 103.780
Low
110.00
Averages
120.14
High
133.00
Current: 103.780
Low
110.00
Averages
120.14
High
133.00
About AXS
AXIS Capital Holdings Limited is a holding company. The Company, through its operating subsidiaries, is a global specialty underwriter and provider of insurance and reinsurance solutions with operations in Bermuda, the United States, Europe, Singapore, and Canada. Its underwriting operations are organized around its global underwriting platforms: AXIS Insurance and AXIS Re. It operates through two segments: insurance and reinsurance. The insurance segment offers specialty insurance products to a variety of niche markets on a worldwide basis. The product lines in this segment are professional lines, property, liability, cyber, marine and aviation, accident and health, and credit and political risk. The reinsurance segment provides treaty reinsurance to insurance companies on a worldwide basis. The product lines in this segment are liability, accident and health, professional lines, credit and surety, motor, agriculture, marine and aviation, catastrophe, property, and engineering.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
AXIS Capital Q4 2025 Earnings Highlights
- Book Value Growth: AXIS Capital reported an 18% increase in diluted book value per share to $77.20 in Q4 2025, reflecting a strong momentum over 13 consecutive quarters, which enhances investor confidence in the company's financial health.
- Record Premiums: The insurance segment achieved record gross written premiums of $7.2 billion, a 9% year-over-year increase, with new premiums written at $2.4 billion and underwriting income rising 40% to $597 million, indicating robust market competitiveness.
- Strategic Investment Impact: The company’s strategic investments in emerging markets and product expansion have driven profitable growth, with enhanced operational efficiency expected from the integration of new AI technologies, which will further optimize business processes and customer experience.
- Optimistic Outlook: Management expressed confidence in achieving mid- to high single-digit premium growth for 2026, despite potential challenges in the reinsurance market, while maintaining a focus on cost management and profitability to ensure continued shareholder returns.
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Axis Capital to Announce Q4 Earnings on January 28
- Earnings Announcement Schedule: Axis Capital Holdings is set to release its Q4 2023 earnings on January 28 after market close, with consensus EPS estimate at $3.12, reflecting a 5.1% year-over-year increase, while revenue is projected at $1.33 billion, down 9.5% year-over-year.
- Historical Performance Review: Over the past two years, Axis Capital has surpassed EPS estimates 88% of the time and revenue estimates 50% of the time, indicating a solid track record in maintaining profitability.
- Expectation Adjustment Dynamics: In the last three months, EPS estimates have seen 8 upward revisions and 1 downward revision, while revenue estimates have had 1 upward revision with no downward adjustments, suggesting increased market confidence in the company's future performance.
- Analyst Rating Changes: Despite a recent downgrade from BofA Securities citing challenges in pricing trends, the company still demonstrates potential for double-digit insurance growth in 2026 through new initiatives and its partnership with RAC Re.
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