12:32 PM EDT, 06/06/2024 (MT Newswires) -- Arch Capital Group ( ACGL ) is on a solid long-term path to growth and profitability amid its focus on core tenets such as disciplined underwriting, prudent approach to risk, and diversification, Morgan Stanley said in report Thursday.

"Although hurricane season will serve as an important near term catalyst for most Bermuda based reinsurers that we cover, Arch Capital ( ACGL ) has positioned itself as one of the long term winners within the reinsurance space," the investment firm said.

Morgan Stanley said Arch Capital's ( ACGL ) diversification allows it to "maximize total return through effective cycle management" and suggests it is "better protected than most peers."

The firm also said it expects the company's investment income to be an earnings contributor given the strong interest rate environment.

Morgan Stanley reiterated its overweight rating on the stock while adjusting its price target to $116 from $115.

Price: 99.89, Change: +0.21, Percent Change: +0.21