Amerisafe, Inc. (AMSF) - Bull of the Day

By
A A A

We are upgrading our recommendation on Amerisafe, Inc. ( AMSF ) to Outperform, based on the consistent top-line growth and sound financial position witnessed in the first quarter, where earnings considerably surpassed the Zacks Consensus Estimate based on higher-than-expected premiums and investment income that drove the top line, underwriting results, book value per share, ROE and combined ratio.

Prudent capital management, expanded share repurchase plan and affirmation of a strong financial strength rating point to decent long-term growth. Employers engaged in hazardous industries pay substantially higher than average rates for workers compensation insurance due to the inherent workplace danger. Amerisafe has a history of profitable underwriting in these industries.

Our six-month target price of $33.00 per share equates to about 19.1x our earnings estimate for 2012. With no dividend supplement, this target price implies a total expected of 18.3% over that period, which is consistent with our Outperform recommendation.
 
AMERISAFE INC (AMSF): Free Stock Analysis Report
 
To read this article on Zacks.com click here.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

Referenced Stocks: AMSF

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

61,354,178
  • $10.59 ▲ 13.26%
57,732,182
  • $16.27 ▲ 1.12%
51,991,548
  • $103.30 ▲ 0.78%
48,129,834
  • $20.65 ▲ 5.52%
41,623,916
  • $12.63 ▲ 8.13%
34,295,241
  • $76.68 ▲ 2.49%
31,519,079
  • $34.57 ▼ 1.00%
28,847,879
  • $3.64 ▲ 0.28%
As of 9/2/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com