STC Stock Forecast & Price Target

Stewart Information Services Corp is experiencing a positive trend in segment earnings, with projections rising from $46 million, $57 million, and $64 million to $48 million, $60 million, and $72 million over the next three years. Additionally, the company anticipates an increase in commercial revenues, forecasting growth from $315 million, $347 million, and $366 million to $329 million, $362 million, and $383 million from 2025 to 2027. Furthermore, the firm's fee-per-file estimates are also on the rise, showing an increase from $18,000, $18,400, and $18,900 to $18,500, $19,000, and $19,500 in the same period, reflecting enhanced operational efficiency and revenue generation capabilities.

Stewart Information Services Corp is facing a decline in segment operating margin estimates, projected at 11.0% for 2025 and 12.1% for 2026 and 2027, down from previous estimates of 10% and 12%. Key risk factors include a potential slowdown in both the purchase and commercial real estate markets, coupled with challenges in improving core title margins. Furthermore, while management anticipates strong domestic commercial revenues, the growth rate of 46% year-over-year in the second quarter is expected to slow in the latter half of the year, indicating tougher comparisons ahead.