Everest Group downgraded to Market Perform from Outperform at BMO Capital

BMO Capital downgraded Everest Group (EG) to Market Perform from Outperform with a price target of $375, down from $453. The firm says its recent upgrade to Outperform was predicated on Everest’s business being less of a “turnaround” than what it learned yesterday. The analyst also estimates that given the complexity of the company’s restructuring, consensus estimates will not lower the earnings run-rate deep enough. BMO’s 2026 earnings estimates are 20% below the consensus. Everest’s fixes will take many quarters or even years to play out before most investors will more clearly see the company as earning a mid-teens sustainable return on equity, the firm contends.