BofA analyst Joshua Shanker raised the firm's price target on Arch Capital to $122 from $121 and keeps a Buy rating on the shares. Despite prices having already declined in 2024 and 2025, the firm expects that regional Florida/Gulf of Mexico prices for property-cat reinsurers will be down 15%-20% as the impact of June and July renewals are assessed, the analyst tells investors. However, despite deteriorating market conditions in reinsurance, the firm believes return on tangible equity remains "healthy," while price-to-Q1 tangible book value per share excluding Bermuda deferred tax assets undervalues these returns, the analyst added.
