Piper Sandler Overweight on Skyward Specialty Insurance (SKWD)

Skyward Specialty Insurance Group Inc. (NASDAQ:SKWD) is one of the 15 Most Undervalued NASDAQ Stocks to Buy According to Wall Street Analyst.

Piper Sandler, on February 26, reduced its target price on Skyward Specialty Insurance by 15.4% to $55 (From $65), but retained its Overweight call on the stock. Valuation compression due to poor investor sentiment in a soft market, despite a good Q4 print, was the key reason for this price cut. Nonetheless, the firm believes that the shares are currently attractively priced, especially given the solid growth and return on equity numbers, which are not well reflected in the stock price.

SKWD released its Q4 2025 earnings report on February 23, which showed the company growing its diluted earnings per share by almost 3 times to $1.03 (from $0.35). This rapid earnings growth allowed SKWD to more than double its return on average equity to 19.3% (vs. 8.1%).

The rapid earnings growth was driven by two factors. The first driver was the notable improvement in SKWD’s loss ratio, with smaller expense rates coming from catastrophic losses and prior year accidents. The second driver was net investment gains in Q4 2025.

Skyward Specialty Insurance Group Inc. (NASDAQ:SKWD) is an insurance company that provides commercial property and casualty products and solutions. The company is based in Houston, Texas, and was founded in January 2006 by Stephen Lyndon Way.

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