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Skyward Specialty Insurance Group (SKWD): Evaluating Valuation After Its New AI-Powered Underwriting Partnership With Sixfold

Simply Wall St · 2d ago

Skyward Specialty Insurance Group (SKWD) just teamed up with AI firm Sixfold to roll out AI powered underwriting across its U.S. property and casualty lines, a move that directly affects underwriting efficiency and cost.

See our latest analysis for Skyward Specialty Insurance Group.

The timing of this AI push lines up with a solid run in the stock, with a 90 day share price return of 10.68 percent and a more modest 1 year total shareholder return of 1.33 percent. This suggests near term momentum is building as investors reassess its growth and efficiency story.

If this kind of tech enabled shift in underwriting has your attention, it could be worth scanning high growth tech and AI stocks to see which other names are quietly reshaping their industries.

Yet with revenues and earnings growing near 20 percent annually, the shares still trading at a hefty intrinsic discount and almost 23 percent below analyst targets, is this a genuine mispricing, or is the market already baking in that future growth?

Most Popular Narrative Narrative: 15.2% Undervalued

Compared with Skyward Specialty Insurance Group's last close of $51.72, the most followed narrative points to a higher fair value, leaning on steady growth and expanding margins.

The analysts have a consensus price target of $61.0 for Skyward Specialty Insurance Group based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $70.0, and the most bearish reporting a price target of just $49.0.

Read the complete narrative.

Want to see how double digit revenue growth, rising margins and a future earnings multiple come together in one storyline? The crucial assumptions behind that upside are not obvious from the headline numbers. Curious which profit and valuation levers need to fire for this target to make sense? The full narrative unpacks every step in that math.

Result: Fair Value of $61 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, sustained volatility in its investment portfolio and softening specialty markets could quickly chip away at those margin and valuation assumptions.

Find out about the key risks to this Skyward Specialty Insurance Group narrative.

Build Your Own Skyward Specialty Insurance Group Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a custom narrative in just a few minutes: Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Skyward Specialty Insurance Group.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.