BUZZ-Jefferies downgrades insurer RLI to 'underperform' on headwinds to profit growth

Jefferies downgrades specialty insurer RLI Corp RLI.N to "underperform" from "buy"; cuts PT to $61 from $95, a 15.8% downside to stock's last close

Brokerage says it expects growing competition in specialty insurance business and lighter premium growth to create a "challenging set-up" for EPS growth over the next two years for RLI

Adds that it also expects continued high loss trend environment to limit RLI's underwriting income growth

Jefferies lowers its EPS estimates for RLI by nearly 6% to 8% over the next two years

Three of 10 brokerages rate the stock "buy" or higher, six "hold" and one "strong sell"; their median PT is $82 — LSEG data

RLI stock climbed 26.6% in 2024