Verisk Analytics: High-Single-Digits Subscription Growth And Cheap Valuation (Rating Upgrade)

I am upgrading Verisk Analytics to Buy, as the stock now trades at a more attractive ~23.5x NTM PE with improved margin of safety. VRSK’s subscription revenue, representing 83% of total, grew 8% OCC, supporting a high-single-digit growth thesis and reducing reliance on transactional volumes. FY2026 guidance appears achievable, with H2 growth set to accelerate due to easier comps and the resumption of a federal contract. AI tools like XactAI offer optional mid- to long-term upside, with early adoption trends supporting future margin expansion and potential cross-selling.

My previous investment thought on Verisk Analytics ( VRSK ) was a hold because the business was performing well, but the stock had reached ~43x the NTM PE. I am now upgrading VRSK to buy. At ~23.5x