RLI Upgraded to Hold by Jefferies, Price Target Remains at $52
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Source: seekingalpha
- Rating Upgrade: Jefferies upgraded RLI from Underperform to Hold, primarily due to valuation compression, while maintaining the price target at $52, indicating cautious optimism in the market.
- Strategic Actions Completed: The company has completed targeted re-underwriting and strategic actions across its portfolio, and while property rate deceleration is expected to continue, analysts do not foresee a materially deeper slowdown, suggesting overall market stability.
- Dividend Yield: RLI's dividend yield is approximately 5%, and its valuation has reset from 4x P/B to 2.8x, limiting downside risk and showcasing the company's potential for capital returns.
- Industry Position: RLI's long history of disciplined underwriting supports a premium to peers, and its enhanced capital return capabilities for 2026/27 indicate a competitive advantage in a challenging market.
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Analyst Views on RLI
Wall Street analysts forecast RLI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RLI is 69.67 USD with a low forecast of 62.00 USD and a high forecast of 81.00 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.
4 Analyst Rating
1 Buy
3 Hold
0 Sell
Hold
Current: 56.980
Low
62.00
Averages
69.67
High
81.00
Current: 56.980
Low
62.00
Averages
69.67
High
81.00
About RLI
RLI Corp. is a specialty insurer serving niche property, casualty, and surety markets. The Company provides underwriting expertise and service to commercial and personal line customers nationwide. The Company's segment includes Casualty, Property, and Surety. The casualty portion of its business consists largely of commercial excess, personal umbrella, general liability, transportation, and management liability coverages, as well as package business and other specialty coverages, such as professional liability and worker’s compensation for office-based professionals. Its Property segment is comprised primarily of commercial fire, hurricane, earthquake, difference in conditions, and marine coverages. Its Surety segment specializes in writing small to medium-sized contract surety coverages, including payment and performance bonds. Its products are offered through its insurance subsidiaries, RLI Insurance Company, Mt. Hawley Insurance Company and Contractors Bonding and Insurance Company.
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.
RLI Upgraded to Hold by Jefferies, Price Target Remains at $52
- Rating Upgrade: Jefferies upgraded RLI from Underperform to Hold, primarily due to valuation compression, while maintaining the price target at $52, indicating cautious optimism in the market.
- Strategic Actions Completed: The company has completed targeted re-underwriting and strategic actions across its portfolio, and while property rate deceleration is expected to continue, analysts do not foresee a materially deeper slowdown, suggesting overall market stability.
- Dividend Yield: RLI's dividend yield is approximately 5%, and its valuation has reset from 4x P/B to 2.8x, limiting downside risk and showcasing the company's potential for capital returns.
- Industry Position: RLI's long history of disciplined underwriting supports a premium to peers, and its enhanced capital return capabilities for 2026/27 indicate a competitive advantage in a challenging market.
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RLI Corp Reports $0.94 EPS Growth and $2 Special Dividend
- Sustained Profitability: RLI Corp achieved its 30th consecutive year of underwriting profitability, with operating earnings per share rising from $0.52 to $0.94 in 2024, demonstrating strong profitability amidst a competitive market.
- Increased Shareholder Returns: The company declared a special dividend of $2 per share in addition to the ordinary fourth-quarter dividend, reflecting robust capital generation and commitment to shareholders, thereby enhancing investor confidence.
- Book Value Growth: RLI Corp reported a 33% increase in book value per share for the year, reaching $5.29, indicating effective capital management and profitability, which strengthens its competitive position in the market.
- Stable Combined Ratio: The company maintained a combined ratio of 83.6% for the full year, showcasing effective underwriting practices, and despite market pressures, it continues to exhibit strong financial health.
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