RBC Capital Markets raised its price target on the shares of Trisura Group (TSU.TO) shares by $1.00 to $60.00 after the company's first-quarter results that were slightly ahead of estimates.
Trisura's $0.78 operating EPS beat RBC's $0.72 estimate and $0.76 consensus, notes analyst Bart Dziarski, who is maintaining an outperform rating on the company.
Gross premiums written (GPW) rose 3% YoY driven by Surety (+12%), Warranty (+9%) and US Programs (+6%), offset by Canadian Fronting (down 24%) as elevated competition appears to be intensifying, he adds.
Trisura also expanded its U.S. Surety practice into five new states: Illinois, Pennsylvania, Georgia, Washington, and Florida. The last remaining major state for the company to obtain a license in is California, which Dziarski expect to occur in the near-term. RBC is modelling 2026 US GPW growth of 13%, accelerating to 16% in 2027.
"TSU trades at a slight discount to specialty peers and we believe a premium is warranted given superior growth profile."
Price: $41.49, Change: $-0.67, Percent Change: -1.59%