Verisk Analytics (VRSK) delivered Q1 organic revenue growth above consensus, helped by solid performances in its underwriting and claims businesses, Morgan Stanley said Wednesday in a report.
Client interest and competitive win rates remain strong, though management noted that sales cycles for AI-related products may take longer as insurers work through governance and data-security requirements, the report said.
Morgan Stanley expects Verisk to unlock more value from its proprietary data as insurers integrate it into their own systems or use the company's models and tools, though the report said the opportunity is still in early stages.
Last year's Q2 margin included a one-time foreign-exchange benefit of 120 basis points that will not repeat, the report said. Management also began a $1.5 billion accelerated share repurchase and faced higher interest expense tied to more than $1 billion in new debt issuance, the report said.
Morgan Stanley called Verisk one of the most AI-resilient companies in its information-services coverage, raising its price target on the stock to $235 from $230 and maintaining its equal-weight rating.
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