Barclays Starts Arch Capital (ACGL) at Equalweight

Barclays analyst Alex Scott initiates coverage on Arch Capital (NASDAQ: ACGL) with a Equalweight rating and a price target of $120.00.

The analyst comments "We are initiating on Arch Capital Group with an Equal Weight rating and a price target of $120, reflecting a 1.9x P/BVPS xAOCI multiple on our 2Q25E estimate. Our Equal Weight rating is driven by our view that ACGL should continue to achieve solid BVPS compounding given its diversification and benefits remaining from improved property pricing and a favorable environment for the mortgage insurance in-force business. But we think the recent acquisition of Allianz Midcorp will take time to bear fruit and it is getting more difficult for ACGL to redeploy capital at as strong a return as achieved over the last few years. As a result, we think the valuation will be more range bound for the time being, and we will look for improving opportunities for ACGL to deploy capital either into a hardening casualty reinsurance market or a potentially improved risk reward on property cat heading into 1/1 renewals."

For an analyst ratings summary and ratings history on Arch Capital click here. For more ratings news on Arch Capital click here.

Shares of Arch Capital closed at $113.25 yesterday.

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