Barclays Reiterates Overweight Rating on Verisk Analytics (VRSK)

Barclays analyst Raimo Lenschow reiterated an Overweight rating and $310.00 price target on Verisk Analytics (NASDAQ: VRSK).

The analyst comments "Subscription OCC growth accelerated to +9.1%, leading to a beat. The unchanged guide remains conservative and we expect VRSK to finish above the high end (we model $6.64 adj. EPS). NWP forecasts continue to increase, and VRSK is likely to see strong underwriting pricing growth through FY26e (at least) all while underlying growth continues to accelerate. VRSK shares traded +3.8% vs. SPX ~flat (as of ~3pm ET) after reporting solid 3Q revenue (+6.8% OCC; ~$4M above our estimate), though margin was slightly lighter than expected (adj. EBITDA $401M vs. our $400M; 55.2% margin ~30bps lower than our model). For adj. EPS, VRSK managed to beat our estimates by $0.05 due to tax (see Figure 1). The unchanged guide (see Figure 2) could be interpreted negatively, but we think investors have grown comfortable with the conservative set-ups from management (even this late in the year). Subscription OCC continues to perform well and is benefiting from contract uplifts (i.e., conversions), which has attractive long-term economics and consistency for investors. Looking into out years, 2024 NWP growth is now expected to be +9.5% (was +8% previously) according to SwissRe, and +4% for 2025. Recall that NWP was +10.4% for 2023 (impacts 2025e revenue), so pricing will remain a strong tailwind through 2026 (note that 2022 NWP, benefiting 2024 pricing, was +8.4%). Beyond pricing and conversions, VRSK continues to gain upsell momentum with its Core Lines Reimagine initiative"

For an analyst ratings summary and ratings history on Verisk Analytics click here. For more ratings news on Verisk Analytics click here.

Shares of Verisk Analytics closed at $263.65 yesterday.

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