STC Stock Forecast & Price Target

Stewart Information Services Corp is demonstrating positive financial growth with segment earnings projected to increase from $46 million, $57 million, and $64 million to $48 million, $60 million, and $72 million in the upcoming periods. The company's forecast for commercial revenues is also optimistic, with expected increases to $329 million, $362 million, and $383 million for the years 2025, 2026, and 2027, compared to prior estimates of $315 million, $347 million, and $366 million. Additionally, the fee-per-file metric is anticipated to rise from $18,000 in 2025 to $19,500 by 2027, reflecting an improvement in pricing strategy and operational efficiency.

Stewart Information Services Corp has revised its segment operating margin estimates downward to 11.0% in 2025 and 12.1% in 2026 and 2027, indicating a consistent decline in profitability expectations from previous forecasts. Additionally, the company faces significant risk factors, including a potential slowdown in the purchase or commercial real estate markets and challenges in improving core title margins, which could negatively impact revenue generation. Management anticipates that while domestic commercial revenues may remain strong, the growth rate will likely decrease in the second half of the year due to tougher comparisons from robust performance in the latter half of 2024.