AXIS Capital EPS Growth Lags Peers Amid Lower Capital Returns, BofA Says

MT Newswires Live01-07

AXIS Capital (AXS) faces limited upside following its recent re-rating and is expected to experience slower earnings per share growth compared with peers, BofA Securities said in a Tuesday note.

According to the report, recent loss reserve patterns indicate a smaller buffer, as paid losses have increased relative to incurred losses, aligning AXIS's balance sheet more closely with peer trends.

BofA expects AXIS Capital to deliver strong 15% to 16% returns on equity in 2026-2027, though EPS forecasts are below consensus due to higher acquisition costs and weaker reserve gains.

The company could still outperform peers due to increased reliance on third-party underwriting and a reinsurance portfolio that is less affected by declining property pricing, the note added.

BofA downgraded the stock to neutral from buy and lowered its price target to $115 from $116.

Shares of the company were down 2.9% in recent trading.

Price: 102.36, Change: -3.15, Percent Change: -2.99

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