Analysts at RBC Capital provided a 2022 preview for Verisk Analytics, Inc. (NASDAQ:VRSK), stating that early indications of FY22 strong direct written premium growth suggest durable insurance tailwinds.

According to the analysts, energy revenue growth should improve in FY22 by lapping investment banking client headwinds and sustained momentum driven by stable oil prices.

The analysts expect flattish margins in FY22 as operating leverage is offset by higher T&E, hiring, and moderating Cloud headwinds. RBC Capital believes the company will likely divest the Financial Services business but retain the Energy business given the strategic fit and the potential dilution from the deal.