William Blair analyst Adam Klauber upgraded HCI Group to Outperform from Market Perform without a price target. The analyst sees a “strong runway for elevated earnings growth.” HCI is poised to achieve accelerated premium growth going forward given a combination of multiple organic growth vectors and opportunity through its relationship with Florida Citizens, the analyst tells investors in a research note. The firm also sees a good outlook for the company’s margins amid a “calmer” reinsurance market and decreased litigation due to Florida tort reform. Blair thinks HCI’s operating earnings per share should approach the $11 range by 2025. The stock is currently trading at 9-times 2025 estimates, but 13- to 14-times is justified, the firm contends.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
See the top stocks recommended by analysts >>
Read More on HCI:
- HCI Group Reports Fourth Quarter and Full Year 2023 Results
- Hci Group, Inc. (HCI) Q4 Earnings Cheat Sheet
- HCI Group Sets Fourth Quarter and Full Year 2023 Earnings Call for Thursday, March 7 at 4:45 p.m. ET
- HCI Group Enhances Capital Flexibility and Growth Potential
- HCI Group Declares Quarterly Cash Dividend
