Bowhead Specialty Holdings Inc. (NYSE: BOW) Analyst Sets Price Target

• Bowhead Specialty Holdings Inc. (NYSE: BOW) receives a price target of $33 from JMP Securities, indicating a potential upside of about 10.92%.
• The company expects a significant increase in gross written premiums, projecting growth of 27% to 34% year over year.
• Projected net income ranges between $11.5 million and $12.5 million, with an anticipated return on equity between 13.0% and 14.0%.

Bowhead Specialty Holdings Inc. (NYSE: BOW) is a specialty lines insurance group that provides tailored insurance solutions. On October 28, 2024, analyst Matthew Carletti from JMP Securities set a price target of $33 for BOW. At that time, the stock was trading at $29.75, suggesting a potential upside of about 10.92%.

Bowhead's recent preliminary financial results for the third quarter of 2024 show promising growth. The company expects gross written premiums to increase by 27% to 34% year over year, reaching between $193 million and $200 million. This growth in premiums indicates strong demand for Bowhead's insurance products.

Net income for Bowhead is projected to be between $11.5 million and $12.5 million, translating to $0.34 to $0.37 per diluted share. Adjusted net income is expected to be slightly higher, ranging from $12 million to $13 million, or $0.36 to $0.39 per diluted share. These figures reflect Bowhead's ability to generate profit efficiently.

Bowhead's return on equity, a measure of financial performance, is forecasted to be between 13.0% and 14.0%. The adjusted return on equity is expected to be slightly higher, ranging from 13.5% to 14.5%. This indicates that Bowhead is effectively using its equity to generate returns.

The company's book value per share is anticipated to be between $11.00 and $11.25, while the diluted book value per share is expected to be between $10.80 and $11.00. As of now, BOW's stock is priced at $29.97, reflecting a 1.86% increase. The stock has seen a high of $32.55 and a low of $22.14 over the past year, with a market capitalization of approximately $978.65 million.