
Palomar (PLMR) Stock Forecast & Price Target
Palomar (PLMR) Analyst Ratings
Bulls say
Palomar Holdings Inc is positioned for significant growth, with strong gross written premium (GWP) expansion projected for its inland marine and other property units, fueled by substantial rate increases and a broader geographic presence. The company's net earned premiums are expected to benefit from a notable increase in crop insurance retention, improving the underwriting margin to 20% in 2024, further solidifying its financial performance. Additionally, the upward revision of earnings per share (EPS) estimates reflects strong anticipated earnings growth, with expectations of continued GWP momentum and reduced earnings volatility enhancing the stock’s appeal.
Bears say
Palomar Holdings Inc. is facing challenges due to a 5% year-over-year decline in commercial earthquake rates, which could negatively impact revenue generation amid changing market dynamics. The company's modest catastrophe retention of $17.5 million, representing only 5% of total shareholders' equity, poses a risk to earnings stability, particularly in the event of multiple catastrophic incidents. Furthermore, potential disruptions from minimal underwriting flexibility with program administrators and adverse outcomes related to California wildfires could further undermine investor confidence and earnings predictability.
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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