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

The author is upgrading Verisk Analytics (VRSK) to a Buy rating due to its more attractive valuation at approximately 23.5x next twelve months (NTM) PE, offering an improved margin of safety. The company's subscription revenue, which constitutes 83% of its total revenue, shows robust high-single-digit growth, reducing reliance on transactional volumes and supporting the growth thesis. Furthermore, the FY2026 guidance is considered achievable, with AI tools like XactAI providing potential mid-to-long-term upside through margin expansion and cross-selling.