Update shared on04 Sep 2025
Fair value Increased 0.82%Analysts have raised Fairfax Financial Holdings’ price target to CA$2,634, citing its consistent underwriting and investment performance, portfolio repositioning amid favorable interest rates, and narrowing valuation discount versus peers.
Analyst Commentary
- Bullish analysts cite consistent delivery of solid underwriting and investment results as a key reason for upward price target revisions.
- Improving investment performance, driven by a repositioned portfolio benefiting from current interest rate conditions, is contributing to increased optimism.
- Fairfax's ongoing valuation discount relative to peers is expected to narrow, supporting higher price targets.
- The company is now viewed as a "top value pick" among financial sector names due to attractive risk-reward characteristics.
- Recent Outperform ratings reflect consensus confidence in Fairfax's business fundamentals and earnings outlook.
What's in the News
- Scotiabank raised its price target on Fairfax Financial to C$2,900 from C$2,500, maintaining an Outperform rating (Periodicals).
- Fairfax Financial announced it will redeem all outstanding Series G and Series H Preferred Shares on September 30, 2025, for a total of CAD 250 million plus accrued dividends (Key Developments).
- The preferred share redemption covers approximately 10 million shares, with each share being redeemed at CAD 25.00 (Key Developments).
- From April 1 to June 30, 2025, Fairfax Financial repurchased 51,040 shares for $71.7 million, bringing total buybacks under the 2024 plan to 590,697 shares (2.7%) for $822.2 million (Key Developments).
- Formal notice regarding the preferred share redemption will be delivered to the registered holder in line with the company’s articles (Key Developments).
Valuation Changes
Summary of Valuation Changes for Fairfax Financial Holdings
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from CA$2613 to CA$2634.
- The Future P/E for Fairfax Financial Holdings has significantly risen from 15.23x to 21.73x.
- The Net Profit Margin for Fairfax Financial Holdings has risen slightly from 6.78% to 6.92%.
Disclaimer
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