Janney initiated coverage on Everest Group (NYSE:EG) with a Buy rating and a fair value estimate of $425, highlighting the reinsurer’s strong long-term track record and attractive valuation following recent reserve adjustments.

Everest, a global leader in property and casualty reinsurance with an expanding footprint in primary insurance, has delivered consistent performance over the past 25 years—posting a median operating return on equity (ROE) of 12% and annual shareholder value growth averaging 11%.

Earlier this year, the company underwent two major developments: a CEO transition and a sizable $1.7 billion charge to strengthen casualty reserves, including a nearly $500 million risk margin buffer. While this reset impacted near-term results, Janney believes the move has positioned Everest for a healthier balance sheet and more sustainable growth.

Looking forward, Everest is re-underwriting its casualty portfolio while seeking expansion opportunities in property and specialty lines. Janney expects a return to double-digit operating ROE by 2025 and sees current valuation as compelling, with shares trading at just 0.9x book value per share excluding AOCI.

The firm also highlighted Everest’s capital return strategy, noting over 1 million shares repurchased in the past year and a 10 million share buyback program authorized in late 2024. Taken together, Janney views the stock as undervalued relative to performance potential and well-positioned for a rebound.

• The consensus price target for Everest Group, Ltd. (NYSE: EG) has increased from $412.5 to $453, indicating a more optimistic view from analysts.
• Everest's strategic initiatives, including a $1.7 billion boost to reserves, have positively influenced analysts' sentiments.
• The company projects a net income between $1.3 billion and $1.4 billion for the full year 2024, with non-GAAP net operating income expected to be between $1.2 billion and $1.3 billion.

Everest Group, Ltd. (NYSE: EG) is a prominent player in the global underwriting industry. The company recently changed its name from Everest Re Group, Ltd. to Everest Group, Ltd. in July 2023. This change might have influenced analysts' perspectives, as reflected in the fluctuating consensus price targets over the past year. Everest competes with other major insurance and reinsurance companies in the market.

The consensus price target for Everest Group has seen notable changes. Last month, the average price target was $453, indicating a positive sentiment from analysts. This optimism could be linked to the company's strategic initiatives and improved financial performance. Analyst Michael Zaremski from BMO Capital has also set a price target of $453, reinforcing this positive outlook.

In the last quarter, the average price target was $412.5, lower than the current month's target. This suggests that analysts have become more optimistic about Everest's prospects. The company's decision to bolster its reserves by $1.7 billion, due to social inflation and increased third-party litigation funding, might have contributed to this shift in sentiment.

A year ago, the average price target was $448, slightly lower than the current target but higher than last quarter's. Despite a 4% decline in shares over the past year, Everest's strategic shift under new CEO Jim Williamson, including a more conservative reserve policy, aims to reset expectations and potentially exceed future forecasts.

Everest Group anticipates reporting a net income between $1.3 billion and $1.4 billion for the full year 2024. The company expects its non-GAAP net operating income to be between $1.2 billion and $1.3 billion. These figures, along with the upcoming earnings report, could further influence analysts' price targets and investor sentiment.

• The consensus price target for Everest Group, Ltd. (NYSE: EG) has increased from $412.5 to $453, indicating a more optimistic view from analysts.
• Everest's strategic initiatives, including a $1.7 billion boost to reserves, have positively influenced analysts' sentiments.
• The company projects a net income between $1.3 billion and $1.4 billion for the full year 2024, with non-GAAP net operating income expected to be between $1.2 billion and $1.3 billion.

Everest Group, Ltd. (NYSE: EG) is a prominent player in the global underwriting industry. The company recently changed its name from Everest Re Group, Ltd. to Everest Group, Ltd. in July 2023. This change might have influenced analysts' perspectives, as reflected in the fluctuating consensus price targets over the past year. Everest competes with other major insurance and reinsurance companies in the market.

The consensus price target for Everest Group has seen notable changes. Last month, the average price target was $453, indicating a positive sentiment from analysts. This optimism could be linked to the company's strategic initiatives and improved financial performance. Analyst Michael Zaremski from BMO Capital has also set a price target of $453, reinforcing this positive outlook.

In the last quarter, the average price target was $412.5, lower than the current month's target. This suggests that analysts have become more optimistic about Everest's prospects. The company's decision to bolster its reserves by $1.7 billion, due to social inflation and increased third-party litigation funding, might have contributed to this shift in sentiment.

A year ago, the average price target was $448, slightly lower than the current target but higher than last quarter's. Despite a 4% decline in shares over the past year, Everest's strategic shift under new CEO Jim Williamson, including a more conservative reserve policy, aims to reset expectations and potentially exceed future forecasts.

Everest Group anticipates reporting a net income between $1.3 billion and $1.4 billion for the full year 2024. The company expects its non-GAAP net operating income to be between $1.2 billion and $1.3 billion. These figures, along with the upcoming earnings report, could further influence analysts' price targets and investor sentiment.