Investment analysts at Truist Securities have lowered their price objective for RLI Corp. (NYSE:RLI) to $58 from a previous $62 while retaining a Hold recommendation on the insurance firm's stock. At present, RLI's shares are valued at approximately $57.25, hovering close to their 52-week nadir of $55.80. Data from InvestingPro indicate that the stock might be undervalued relative to its estimated Fair Value.
The revision accompanies a decrease in Truist's 2026 full-year earnings per share (EPS) forecast, which now stands at $2.70, down from $2.86, primarily due to tempered expectations for the company's top-line growth. Similarly, the 2027 EPS estimate has been trimmed to $2.70 from the prior $2.87.
The updated price target equates to a valuation multiple of 21 times Truist's estimated EPS for 2027. Despite this downward adjustment, Truist continues to designate RLI's stock as Hold, reasoning that its current market price effectively reflects anticipated earnings challenges, particularly stemming from pressures on the company's property underwriting margin.
Nevertheless, RLI has demonstrated a history of consistent dividend payments, maintaining payouts for 50 straight years, with a current dividend yield of 4.61%, as reported by InvestingPro. Investors can access a detailed Pro Research Report on RLI among over 1,400 US-listed equities within InvestingPro’s coverage.
In its recent quarterly disclosure for Q4 2025, RLI delivered an EPS of $0.94, exceeding analyst projections of $0.79 by nearly 19%. However, its revenue for the period fell short of forecasts, registering at $463.24 million versus the expected $474.66 million.
Market analyst updates have been mixed: Jefferies upgraded its rating on RLI shares from Underperform to Hold, attributing this change to a notable contraction in the company's valuation metrics, with the price-to-book ratio declining to around 2.8x from over 4x a year prior. Wells Fargo adjusted its price target slightly downward to $59 from $62 but maintained an Equal Weight stance, citing apprehensions over the company's revenue growth trajectory.
Moreover, Citizens analyst Matthew Carletti upheld a Market Perform rating, characterizing RLI as a "superb but fairly valued" entity, recognizing its strong underwriting operations and growth in book value. These recent analytical perspectives collectively portray a nuanced view of RLI Corp’s financial stability and valuation in the marketplace.