From Financial Modeling Prep: 2025-01-10 17:01:00

Raymond James analysts reaffirmed an Outperform rating and $80 price target for Mercury General Corporation (NYSE:MCY) despite a 19% stock price drop due to wildfires near Los Angeles.

Despite wildfire challenges, Mercury General’s profitability, top-line growth, and net investment income are seen as potential drivers for a stock price recovery.

Insured loss estimates for the wildfires range from $11 billion to $17.5 billion, potentially becoming the costliest in U.S. history. However, Mercury General’s underwriting practices may help limit their exposure to gross losses.

Analysts adjusted the first-quarter 2025 operating EPS estimate to breakeven due to anticipated losses. Despite setbacks, Mercury General is expected to generate around $193 million in pre-tax income in Q1 2025.

Full-year EPS estimates for fiscal years 2025 and 2026 have been revised downward to $5.30 and $7.00 from previous estimates of $6.90 and $7.02.



Read more at Financial Modeling Prep:: Mercury General’s Outperform Rating Maintained Des…