Wall Street Has a Mixed Opinion on Arch Capital (ACGL), Here’s Why

​Arch Capital Group Ltd. (NASDAQ:ACGL) is one of the Cheap NASDAQ Stocks to Buy Now. On December 2, Harry Fong from Roth MKM lowered the firm’s price target on the stock from $125 to $110, while reiterating a Buy rating. Earlier on November 24, Rowland Mayor from RBC Capital initiated Arch Capital Group Ltd. (NASDAQ:ACGL) with a Buy rating and $108 price target.

​Harry Fong from Roth MKM lowered the price target on the stock mainly due to the mixed results from its Q3 2025 earnings release on October 27. ​He noted that the written premium growth during the quarter was below expectations, and he sees this trend continuing in the future.

During the quarter, the company reported a 2.05% year-over-year decrease in revenue to $3.96 billion, which fell short of expectations by $446 million. However, the EPS of $2.77 topped consensus by $0.52. The soft performance was attributed to a 0.6% decrease in gross premium written and a 2.1% decrease in net premium written.

On the other hand, RBC Capital’s Rowland Mayor noted that he sees strong return on equity and book value per share growth amongst insurance carriers. Regarding Arch Capital Group Ltd. (NASDAQ:ACGL), the analyst expects a slowdown in top-line due to a slower mortgage and reinsurance environment. However, he expects the slowdown to be offset by strong underwriting margins and growing net investment income.

​Arch Capital Group Ltd. (NASDAQ:ACGL), headquartered in Pembroke, Bermuda, is a company that offers insurance, reinsurance, and mortgage insurance products. Founded in 1995, the company is dedicated to sustainable financial growth.

While we acknowledge the potential of ACGL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ACGL and that has 100x upside potential, check out our report about this cheapest AI stock.

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