Arch Capital price target raised to $125 from $115 at JMP Securities

JMP Securities raised the firm’s price target on Arch Capital to $125 from $115 and keeps an Outperform rating on the shares. The firm expects Q3 results to be highlighted by an elevated level of catastrophes, notably Hurricane Helene, ongoing concerns around casualty loss reserves, and positive mark-to-market impacts on investment portfolios, and sees focus remaining forward-looking, centered around the impact of Hurricane Milton as well as ongoing signs of casualty reserve stress, the analyst tells investors in a research note. The firm recommends investors focus on companies that have strong balance sheets, with EPS streams that are leveraged to both underwriting results as well as investment income, such as Arch Capital.