Cantor Fitzgerald has reaffirmed an Overweight recommendation on W.R. Berkley (NYSE:WRB) and kept its $76.00 price target after the company released fourth-quarter 2025 financial results. The stock is trading at $66.88 according to InvestingPro data, implying potential upside to the Cantor Fitzgerald target.
The insurer reported diluted earnings per share of $1.13 for the fourth quarter, narrowly missing Cantor Fitzgerald's $1.14 projection. The firm characterized that shortfall as "effectively in-line overall." On a trailing-twelve-month basis, diluted EPS stands at $4.76, while analysts have projected $4.51 for fiscal year 2025.
Underwriting margins were largely unchanged relative to recent quarters, and top-line expansion slowed to low-single-digit growth in Q4. Management indicated expectations for improvement in future periods. The company has preserved a gross profit margin of 43.85% and delivered a return on equity of 21%, metrics that Cantor Fitzgerald highlighted in assessing the firm's financial strength. W.R. Berkley also posts a Piotroski Score of 9, a measure cited in the InvestingPro profile as signaling robust fundamentals.
Investment performance presented a mixed picture. Lower-than-expected catastrophe losses provided a cushion against weaker returns in an alternative investment sleeve, which produced a modest shortfall in net investment income. Cantor Fitzgerald noted that this shortfall did not materially affect core underwriting results. The insurer's market sensitivity remains low, with a beta of 0.39 compared with the broader market, and the company offers a 2.78% dividend yield after raising its payout for three consecutive years.
Cantor Fitzgerald commented that future growth appears "increasingly driven by greater confidence in products where pricing is viewed as rate adequate," describing that dynamic as "early soft-market growth." Valuation metrics cited in the InvestingPro analysis show a price-to-earnings ratio of 14.01 and a PEG ratio of 0.6, figures the platform flagged as indicating potentially attractive valuation relative to the company's growth prospects.
Additional brokerage reactions to the same set of results were less uniformly bullish. W.R. Berkley reported revenue of $3.72 billion for the quarter, exceeding consensus expectations of $3.19 billion, a 16.61% surprise. Despite the revenue beat, Jefferies reduced its price objective from $75.00 to $70.00 and retained a Hold stance. BofA Securities trimmed its target from $69.00 to $66.00 while maintaining a Neutral rating, noting the firm's earnings were slightly below its own forecast but in line with broader Street consensus.
Overall, the result produced a mix of analyst reactions. Cantor Fitzgerald's reiteration of an Overweight rating and its $76.00 target underscore one view that valuation and near-term product pricing dynamics support upside. Other brokerages' lowered targets and neutral or Hold ratings reflect more cautious assessments of near-term earnings and the margin outlook.
What the numbers show
- Q4 diluted EPS: $1.13 (Cantor Fitzgerald estimate: $1.14).
- Trailing twelve-month diluted EPS: $4.76.
- Analysts' fiscal 2025 EPS forecast: $4.51.
- Q4 revenue: $3.72 billion versus $3.19 billion expected (16.61% surprise).
- Gross profit margin: 43.85%; return on equity: 21%.
- Piotroski Score: 9; beta: 0.39; dividend yield: 2.78% with three consecutive annual raises.
- Valuation: P/E 14.01; PEG 0.6.
Cantor Fitzgerald's view is that a return to stronger growth may be led by products where current pricing is deemed adequate, a factor the firm labeled as indicative of early stages of soft-market growth. The brokerage characterized the Q4 EPS outcome as effectively in-line, even though it missed its internal estimate by a penny.
Investors and analysts will likely weigh the firm's steady underwriting margins and strong profitability metrics against the mixed signals from investment income and the disparate reactions from sell-side firms. For those seeking deeper valuation and model-oriented analysis, InvestingPro offers a Pro Research Report on W.R. Berkley as part of its coverage universe.