STC Stock Forecast & Price Target

Stewart Information Services Corp is experiencing a positive trend in its segment earnings, with projected increases from $46 million, $57 million, and $64 million to $48 million, $60 million, and $72 million in the near future. Furthermore, the company's forecast for commercial revenues shows an upward trajectory, rising from $315 million, $347 million, and $366 million to $329 million, $362 million, and $383 million over the next three years. Additionally, the fee-per-file estimates are also on the rise, expected to increase from $18,000, $18,400, and $18,900 to $18,500, $19,000, and $19,500 during the same period, indicating a strengthening financial position.

Stewart Information Services Corp has reported a decline in its segment operating margin estimates, projected to be 11.0%, 12.1%, and 12.1% for the years 2025, 2026, and 2027, down from previous estimates of 10%, 12%, and 12%. The company faces significant risks, including potential slowdowns in the purchase or commercial real estate markets and challenges in improving core title margins, which may adversely affect profitability. Although domestic commercial revenues experienced a notable year-over-year increase of 46% in the second quarter, management anticipates a decline in growth rates in the second half of the year due to tougher comparisons stemming from the strong performance in the latter half of 2024.