
Palomar (PLMR) Stock Forecast & Price Target
Palomar (PLMR) Analyst Ratings
Bulls say
Palomar Holdings Inc. is poised for significant growth, with expectations of strong gross written premium (GWP) growth in its inland marine and other property unit, projected at 29.4% for Q4 of 2024 and an additional 25% growth in 2025, spurred by rate increases and expanded geographic presence. The company's net earned premiums are anticipated to improve, particularly in the crop insurance segment, where retention is set to rise dramatically from 5% to 30%, contributing to a robust 20% underwriting margin in 2024. Furthermore, the upward revisions for earnings per share (EPS) to $6.65 in 2025 and $7.90 in 2026 underscore a promising financial trajectory, supported by decreasing earnings volatility and a strong overall performance relative to industry benchmarks.
Bears say
Palomar Holdings Inc. is facing a negative outlook due to several fundamental factors. The company's commercial earthquake rates have declined by approximately 5% year-over-year, and management's outlook reflects potential challenges in the reinsurance market, highlighting a concerning 15% drop in their smaller reinsurance renewal. Additionally, Palomar's limited retention of $17.5 million for catastrophes poses a risk to earnings predictability, and the company is particularly vulnerable to significant catastrophe losses, which could further impact investor sentiment and the overall stability of its financials.
This aggregate rating is based on analysts' research of Palomar and is not a guaranteed prediction by Public.com or investment advice.
Palomar (PLMR) Analyst Forecast & Price Prediction
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