UBS Lowers Ryan Specialty Price Target to $80, Keeps Buy Rating

UBS lowered the price target for Ryan Specialty (RYAN) to $80 from $84 and maintains a Buy rating. The firm updated its model for Property & Casualty and Brokers, citing lower premiums and margins.

UBS analyst Brian Meredith has revised the price target for Ryan Specialty Holdings Inc (RYAN) to $80.00, down from the previous $84.00. Meredith maintains a "Buy" rating for the company, reflecting a -4.76% adjustment from the prior target [1].

This update comes amidst a broader trend of analyst revisions for Ryan Specialty Holdings Inc. Over the past several months, analysts have adjusted their price targets and ratings, with a notable shift in the market's perception of the company's financial health. For instance, Elyse Greenspan of Wells Fargo lowered her price target from $63.00 to $60.00, maintaining an "Equal-Weight" rating [1].

The adjustment by UBS is part of a broader review of the Property & Casualty and Brokers sector, citing lower premiums and margins as factors influencing the downward revision. This sector is critical for Ryan Specialty Holdings Inc, which provides distribution, underwriting, product development, administration, and risk management services to insurance brokers, agents, and carriers.

Investors should note that the average one-year price target for Ryan Specialty Holdings Inc stands at $77.89, with a high estimate of $90.00 and a low estimate of $60.00 [1]. The consensus recommendation from 14 brokerage firms is currently "Outperform," indicating a positive outlook despite the recent downward adjustment in the price target.

UBS's settlement with the U.S. Department of Justice for $300 million related to residential mortgage-backed securities (RMBS) may also impact investor sentiment. This settlement addresses remaining "Consumer Relief Obligations" under a 2017 agreement with the DOJ, allowing UBS to release provisions previously set aside for these losses and potentially bolstering its third-quarter earnings [2].

In conclusion, UBS's downward revision of the price target for Ryan Specialty Holdings Inc reflects a cautious outlook on the company's financial performance, particularly within the Property & Casualty and Brokers sector. Investors should closely monitor the company's financial reports and analyst updates for further insights.

References:
[1] https://www.gurufocus.com/news/3031641/analyst-rating-update-ubs-adjusts-target-for-ryan-ryan-stock-news
[2] https://seekingalpha.com/news/4476968-ubs-reaches-300-million-settlement-for-credit-suisse-mortgage-case