William Blair initiated research coverage of Ryan Specialty Holdings Group, Inc. (RYAN $29.74). Ryan Specialty Group provides distribution, underwriting, and product development services to retail insurance brokers and insurance carriers as a wholesale insurance broker and a managing underwriter.
Analyst Adam Klauber estimated that the company would earn $0.95 per share in 2021 and $1.09 per share in 2022.
“Ryan represents a unique opportunity to buy into a long-term-growth distribution franchise with relatively high barriers to entry,” Klauber said. “A dominant position in higher-growth E&S/specialty insurance markets and a waterfall of volume from retail broker consolidation should drive 15% to 20% long-term top- and bottom-line growth. This should be 50% to 100% higher than retail brokers, and margins should be at the top end of the group. Given these characteristics, Ryan has the potential to be one of the few large, growth-oriented insurance service stocks that can outperform over the long term. “
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Current Ratings Distribution (as of 8/20/21)
Outperform (Buy): 76%
Market Perform (Hold): 24%
Underperform (Sell): 1%
Inv. Banking Relationships*
Outperform (Buy): 31%
Market Perform (Hold): 13%
Underperform (Sell): 0%
* Percentage of companies in each rating category that are investment banking clients, defined as companies for which William Blair has received compensation for investment banking services within the past 12 months.
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