01:23 PM EDT, 04/01/2024 (MT Newswires) -- Verisk Analytics' ( VRSK ) Q1 revenue growth will moderate to mid-single-digit in comparisons to same quarter last year, RBC Capital Markets said in a note emailed Monday.

The company saw increased auto insurance shopping activity, thunderstorm activity, and a non-rate action deal in Q1 2023, RBC said. On top of that, this year non-subscription and subscription growth are expected to decline or moderate due to insurance technology challenges and contractor attrition.

However, positive trends in auto insurance marketing and heightened investment in data analytics by insurance firms are favorable indicators for the company in 2024 and it is expected to experience a margin expansion of about 100 basis points throughout the year.

Growth is expected to accelerate to high single digits in H2 "driven by auto insurance marketing and new product adoption," RBC said. Additionally, Catastrophe bond issuance hit a record high in the first quarter of 2024, indicating strong demand for reinsurance.

Verisk is likely to reaffirm its 2024 guidance of 6% to 8% revenue growth, aligning with its 2025 targets. Earnings guidance of $6.30 to $6.60 is conservative at midpoint, Verisk could potentially deliver on the higher end.

RBC has an outperform rating on Verisk Analytics ( VRSK ) with a price target of $268.

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