Mizuho's Price Target Update#

Mizuho has increased its price target for Everest Group (NYSE:EG) shares from $365 to $388, while keeping a Neutral rating on the stock. Currently, Everest Group shares are trading at $351.90, close to their 52-week high of $368.29. Despite this, some analyses suggest that the stock may still be undervalued.

Earnings Performance#

In its first-quarter report for 2026, Everest Group saw a significant decline in gross premiums written, which dropped by 18% compared to the previous year. This decrease is attributed to the company's exit from commercial retail insurance, the ongoing reduction of its older U.S. casualty business, and pressure on property pricing. Additionally, net premiums earned fell by 7% year-over-year, indicating that the reductions have not yet been fully realized in earnings.

Earnings Estimates Adjusted#

Mizuho has revised its earnings estimates for fiscal 2026, lowering it by $3.80 to $48.60, which is 7% below the consensus among analysts. This adjustment comes despite Everest Group beating earnings expectations in the first quarter. The firm anticipates weak returns in the upcoming quarters and potential losses related to Iran. For fiscal 2027, Mizuho slightly raised its estimate to $61.50, which is 1% above the consensus, while also adjusting the fiscal 2028 estimate to $69.95, aligning with general expectations.

Analyst Insights#

An InvestingPro tip indicates that 11 analysts have lowered their earnings forecasts for Everest Group, reflecting concerns about short-term challenges. The stock currently has a price-to-earnings (P/E) ratio of 7.15, one of the lowest in the insurance sector. Analysts expect that the reduction in net premiums earned and changes in the business mix may improve the underlying loss ratio, although this could be countered by rising costs and a high catastrophe load. In a related update, Keefe, Bruyette & Woods has raised its price target for Everest Group to $411, maintaining an Outperform rating, while also adjusting its earnings per share estimates for 2026 and 2027.