STC Stock Forecast & Price Target

Stewart Information Services Corp is exhibiting positive financial momentum, with segment earnings projected to rise to $48 million, $60 million, and $72 million over the upcoming years, compared to previous earnings of $46 million, $57 million, and $64 million. Furthermore, the company anticipates an increase in commercial revenues, forecasting $329 million, $362 million, and $383 million for 2025, 2026, and 2027, up from earlier estimates of $315 million, $347 million, and $366 million. Additionally, the fee-per-file estimates have been revised upward, with projections of $18.5k, $19.0k, and $19.5k for the same period, reflecting a solid growth trend in this key metric.

Stewart Information Services Corp is facing a declining trend in its segment operating margin estimates, projected to decrease to 11.0% for 2025 and remain stagnant at 12.1% for 2026 and 2027, indicating potential profitability pressure. Furthermore, significant risks include a possible slowdown in both the purchase and commercial real estate markets, which could adversely affect demand for the company’s services, as well as the challenge of maintaining core title margins amidst competitive pressures. Although management anticipates that domestic commercial revenues will remain strong, the expected decline in growth rates in the second half of the year poses difficulties in sustaining momentum against previous high performance metrics.