Strategic Acquisition to Fuel Growth Prospects for Skyward Specialty Insurance (SKWD)

Skyward Specialty Insurance Group (NASDAQ:SKWD) is one of the best financial pure plays under $100 according to Hedge Funds.

On December 9, William Blair analyst Adam Klauber reiterated his optimistic forecast for Skyward Specialty Insurance Group (NASDAQ:SKWD), assigning a Buy rating to the stock.

Klauber’s rating is based on the company’s recent 2026 guidance, where they shared plans to finalize their strategic acquisition of Apollo Group Holdings for $555 million. Following the announcement, shares have appreciated 5%.

In their 2026 guidance, management also forecasted a resilient financial position. They expect somewhere between 20% to 30% growth in gross written premiums. Management also provided EPS guidance that exceeded consensus forecasts by 8%. This offers significant upside given the stock currently trades at a 10x multiple to 2026 earnings forecasts. This multiple is much lower compared to their peer group. Moreover, as per Klauber’s estimates, Skyward Specialty Insurance Group (NASDAQ:SKWD) will deliver revenue and earnings growth in the high-teens.

The broader analyst coverage also reflects a favorable forecast for Skyward Specialty Insurance Group (NASDAQ:SKWD). As of December 30 closing, the estimated 1-year average price target for the stock stands at $64.83, which implies more than 25% upside potential. The stock received 7 analyst ratings, including 6 Buy ratings and 1 Hold rating.

Skyward Specialty Insurance Group (NASDAQ:SKWD) is an innovative specialty insurance company that delivers commercial property & casualty insurance services. They operate through eight distinct underwriting divisions, covering different areas, making their offerings highly comprehensive. These include accident & health, property & agriculture, industries, captives, and surety & transactional.

READ NEXT: 15 Most Promising Mid-Cap Healthcare Stocks Under $50 and 11 Most Promising Small-Cap Industrial Stocks Under $50.

Disclosure: None. This article is originally published at Insider Monkey.