William Blair analyst Jeff Schmitt has maintained their neutral stance on PRI stock, giving a Hold rating yesterday.
Jeff Schmitt has given his Hold rating due to a combination of factors influencing Primerica’s current and future performance. The company’s recent quarterly earnings per share exceeded expectations, driven by strong performance in the ISP segment and significant share buybacks. However, this impressive growth also sets a high bar for future comparisons, and the ISP segment’s close ties to the equity markets suggest that its momentum may decelerate moving forward.
Additionally, the term life segment is under pressure from increased living costs, and investment income growth might slow if the Federal Reserve shifts towards easing monetary policy. While share buybacks are expected to continue supporting earnings growth, the projected growth rate for 2025 is modest at 5%. Furthermore, the stock’s valuation, trading slightly above its historical average, indicates limited potential for significant upside in the near term.
According to TipRanks, Schmitt is a 4-star analyst with an average return of 11.5% and an 84.85% success rate. Schmitt covers the Financial sector, focusing on stocks such as StoneX Group, Tradeweb Markets, and Marketaxess Holdings.
In another report released yesterday, KBW also maintained a Hold rating on the stock with a $315.00 price target.