Axis Capital initiated with a Market Perform at BMO Capital

BMO Capital initiated coverage of Axis Capital (AXS) with a Market Perform rating and $93 price target Axis was a top-performing insurance stock in 2024 and there is room for re-rating from a “still material valuation gap” between a revamped Axis versus its specialty-focused peers, as well as potential upside from promising expense initiatives, the analyst tells investors in a research note. However, BMO’s caution on the direction of pricing and its ability to sustain growth/its improved loss ratio tempers its bullishness for the shares.