RBC Capital analysts provided their views on Verisk Analytics, Inc. (NASDAQ:VRSK) upcoming Investor Day on March 14, noting that the company could tighten the 2024 margin targets of 53-56% to the high end. In addition, the company will likely provide color on lowering the capital intensity over the midterm. The Investor Day will focus on high-growth initiatives while balancing investment and margin.
The analysts believe the company should provide incremental disclosures to get investors comfortable with the sustainability of the revenue growth. In particular, revenue split up by high-growth businesses (namely Life, Marketing, Auto, International Specialty Insurance, Climate, and Cyber), core businesses (ISO, ClaimsSearch), and offerings growing in line with the company average (Xactware, AIR) will be helpful. Investors are looking for details on the company's plans to expand high-growth businesses as a percentage of overall revenues.
The company released its Q4 results earnings last week, with both EPS of $1.43 and revenue of $630.4 million coming in better than expected.