Overview
Citizens analyst Matthew Carletti initiated coverage of Stewart Information Services (NYSE: STC) on Monday, assigning a Market Outperform rating and setting a price target of $80.00. The company, which has a market capitalization of $2.04 billion, was trading at $67.43 at the time of the note. Data from InvestingPro indicates the shares appear undervalued on a Fair Value basis.
Business positioning and financial profile
Stewart Information Services, a title insurance and real estate services provider founded in 1893, is presented by Citizens as having room for strong growth and margin expansion even in the absence of a materially improved housing market. InvestingPro metrics assign the company a financial health score of "GOOD," and report that Stewart's liquid assets exceed its short-term obligations.
On standard valuation measures the shares trade at roughly 1.3 times book value, with an actual price-to-book of 1.38, and at about 9 times estimated 2027 earnings per share. Citizens' model projects a 2027 return on equity of 13% for the company. The stock also yields 3.11% in dividends and has maintained dividend payments for 23 consecutive years.
Relative valuation versus peers
Citizens views Stewart's valuation as attractive when compared with the title industry peer median, which is about 1.6 times book value and roughly 10 times 2027 estimated earnings per share, with a comparable projected return on equity. The $80 price target equates to roughly 1.3 times forward book value and about 11 times 2027 estimated earnings per share, with Citizens noting the target is supported by multiple valuation approaches.
Recent corporate developments
Stewart has moved forward with a public offering, pricing 1,900,000 shares of common stock at $68.00 per share. The offering is expected to close on December 12, 2025, subject to customary closing conditions, and includes a 30-day option for the underwriters to purchase up to an additional 285,000 shares. Goldman Sachs & Co. LLC is the lead book-running manager on the deal, with other financial institutions participating as co-managers.
In executive changes, Stewart appointed Matt Orlando as President of Informative Research, a subsidiary focused on credit, consumer, and real estate data services. Orlando, who joined the company in 2019, will lead growth strategies and product development for that business unit.
On the product and marketing front, PropStream introduced a new video and podcast series called PropStream Pros. The series is available on major streaming platforms and is described as featuring conversations with industry experts aimed at providing real estate professionals with market insights and practical strategies.
Summary
Citizens' initiation of Stewart with a Market Outperform rating and an $80 target emphasizes the research firm's view that the stock is attractively valued relative to peers, backed by a healthy balance sheet, an established dividend track record and potential margin improvement. The company has also undertaken a public offering and made an executive appointment in its data business, developments that Citizens and other market participants will monitor.
Key points
- Initiation: Matthew Carletti of Citizens starts coverage of Stewart with a Market Outperform rating and an $80 price target.
- Valuation and returns: Stewart trades around 1.3 times book value (P/B 1.38), about 9 times 2027 estimated EPS and is projected to deliver a 13% ROE in 2027.
- Balance sheet and dividends: InvestingPro gives the company a "GOOD" financial health score; Stewart yields 3.11% and has paid dividends for 23 years.
Risks and uncertainties
- Closing conditions for the public offering: the planned $68 per share offering is expected to close on December 12, 2025, but is subject to customary closing conditions.
- Housing market uncertainty: Citizens notes the company can expand margins without an improved housing market, which implicitly points to ongoing uncertainty in broader housing conditions that could influence results.
This article presents the research initiation, valuation context and recent corporate actions for Stewart Information Services based on the information provided by Citizens and public company disclosures.