
AMERISAFE (AMSF) Stock Forecast & Price Target
AMERISAFE (AMSF) Analyst Ratings
Bulls say
AMERISAFE Inc has demonstrated a positive outlook due to a 5% increase in its pricing multiple, reaching 1.57x, alongside a significant improvement in the Effective Loss Cost Multiplier (ELCM), indicating enhanced profitability metrics. The company benefits from a strong policy retention rate of 94%, which, combined with consistent profitability and a strategic focus on high-hazard industries, supports expectations for improving financial returns. Additionally, the upward revision of EPS estimates for 2024 and 2025 reflects management's confidence in ongoing internal sales initiatives and favorable market conditions, positioning AMERISAFE for modest multiple expansion in the future.
Bears say
AMERISAFE has experienced a decline in the reserve cushion over the past year, raising concerns about the potential for reduced return on equity due to slowing reserve gains. The company's CEO has highlighted the risk of accelerating medical costs, which could further strain financial performance amid leveling payroll trends and possible inadequacies in reserves for prior accident years. Additionally, increased competition for policyholders may pressure premium rates, compounded by the anticipated rise in workers' compensation claims frequency linked to economic downturns.
This aggregate rating is based on analysts' research of AMERISAFE and is not a guaranteed prediction by Public.com or investment advice.
AMERISAFE (AMSF) Analyst Forecast & Price Prediction
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