RBC Capital has increased its price target on AXIS Capital (NYSE: AXS) to $130.00 from $125.00 and retained an Outperform rating in light of the insurer's fourth-quarter 2025 financial performance. The new target sits close to InvestingPro's Fair Value estimate, which the research indicates points to current undervaluation of the stock.
According to RBC Capital, AXIS Capital closed 2025 with notably strong results. The firm highlights high returns on the company's underwriting operations, a performance supported by substantial capital returning activity. Over the past twelve months AXIS Capital produced a 17% return on equity, a metric RBC points to in assessing the company's profitability profile.
AXIS Capital has provided guidance for 2026 that anticipates attractive growth within its Insurance segment. RBC observes that the company continues to prioritize organic growth opportunities within its capital planning, a strategic focus the research firm views as central to the company's medium-term growth narrative. AXIS Capital's revenue rose 10.17% over the last twelve months, reflecting execution on those growth initiatives.
On valuation, RBC Capital regards AXIS Capital shares as attractively priced. The firm cites a trailing book value per share multiple of 1.3x and a price-to-earnings ratio of 7.6x using 2026 estimates. RBC frames those multiples as appealing given AXIS Capital's mid-teens return on equity profile and the improvement in underwriting stability.
InvestingPro data referenced alongside the RBC view shows a current P/E ratio of 8.4x and a price-to-book ratio of 1.38x, consistent with the assessment of attractive valuation. InvestingPro Tips highlight that AXS is trading at a low P/E ratio relative to near-term earnings growth. The research house that initiated coverage of AXIS Capital in November 2025 continues to identify AXS as its preferred idea within the property and casualty insurance space for 2026.
InvestingPro assigns AXIS Capital an overall financial health score labeled "GREAT" with a numeric value of 3.09, a measure the platform uses to indicate balance-sheet and financial resilience. The platform also offers additional insights and a Pro Research Report for investors seeking more detailed analysis of the company.
Separately, Axis Capital Holdings Ltd reported stronger-than-expected results for the fourth quarter of 2025. The company posted earnings per share of $3.25, ahead of the consensus estimate of $3.12, representing a 4.17% surprise. Revenue for the quarter reached $1.73 billion versus the $1.63 billion analysts had anticipated, a 6.13% positive surprise.
Those results point to a robust quarter for Axis Capital, and the stock recorded gains in after-hours trading following the release. The company exceeded analysts' forecasts, underscoring the stronger business execution reflected in the reported figures.
The combination of improved underwriting returns, capital return activity, revenue growth and upward analyst attention has shaped the current investment case for AXIS Capital. RBC Capital's upgraded target and continued Outperform rating, supported by corroborating metrics from InvestingPro, form the basis for the research firm's conclusion that the stock is undervalued relative to its earnings and book value outlook.
While the reports and analyst commentary favorably position AXIS Capital, the company has provided forward-looking guidance for 2026 that investors will watch closely as execution against that guidance becomes clearer in upcoming reporting periods.