Baird's analyst, Jeffrey Meuler, has elevated the price target for Verisk Analytics (VRSK, Financial) from $320 to $335 while maintaining an Outperform rating. This adjustment follows the company's first-quarter performance, which demonstrated a robust beginning to 2025. The firm highlighted that subscription growth continues to be historically strong.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 15 analysts, the average target price for Verisk Analytics Inc (VRSK, Financial) is $301.16 with a high estimate of $335.00 and a low estimate of $232.37. The average target implies an downside of 2.82% from the current price of $309.90. More detailed estimate data can be found on the Verisk Analytics Inc (VRSK) Forecast page.
Based on the consensus recommendation from 19 brokerage firms, Verisk Analytics Inc's (VRSK, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Verisk Analytics Inc (VRSK, Financial) in one year is $306.68, suggesting a downside of 1.04% from the current price of $309.9. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Verisk Analytics Inc (VRSK) Summary page.
VRSK Key Business Developments
Release Date: May 07, 2025
- Revenue: $753 million, up 7% year-over-year.
- Net Income: $232 million, up 6% year-over-year.
- Diluted GAAP EPS: $1.65, up 9% year-over-year.
- Organic Constant Currency Revenue Growth: 7.9%.
- Subscription Revenue Growth: 10.6% on an OCC basis.
- Adjusted EBITDA Growth: 9.5% on an OCC basis.
- Adjusted EBITDA Margin: 55.3%, up 130 basis points year-over-year.
- Free Cash Flow: $391 million, up 23% year-over-year.
- Cash Dividend: $0.45 per share, a 15% increase from the prior year.
- Share Repurchase Program: $200 million accelerated share repurchase completed in April.
- 2025 Revenue Guidance: $3.03 billion to $3.08 billion.
- 2025 Adjusted EBITDA Guidance: $1.67 billion to $1.72 billion.
- 2025 Adjusted EPS Guidance: $6.80 to $7.10.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Verisk Analytics Inc (VRSK, Financial) reported strong first-quarter results with a 7.9% organic constant currency revenue growth, driven by a 10.6% increase in subscription growth.
- The company achieved a 130 basis points margin expansion, resulting in a 9.5% growth in OCC adjusted EBITDA.
- Verisk Analytics Inc (VRSK) has a durable subscription-based economic model, with 83% of its total revenue coming from subscriptions, which grew 10.6% on an OCC basis.
- The company is actively investing in new solutions, such as the Verisk Synergy Studio, a cloud-native catastrophe modeling platform set to launch in 2026.
- Verisk Analytics Inc (VRSK) is committed to returning capital to shareholders, having paid a 15% increased cash dividend and completed a $200 million accelerated share repurchase program.
Negative Points
- The company faces challenges from an uncertain risk environment, including inflation, regulatory changes, and severe weather events.
- Transactional revenues, which comprise 17% of total revenues, declined by 4% on an OCC basis during the first quarter.
- Verisk Analytics Inc (VRSK) experienced headwinds in its marketing business, particularly in non-insurance segments like financial services and mortgages.
- The company anticipates a potential challenge in maintaining the same trajectory of margin expansion as seen in previous years.
- Higher net interest expenses were reported, resulting from increased debt balances and higher interest rates.
