BMO Capital Downgrades Ryan Specialty Group to Market Perform
BMO Capital Markets analyst Michael Zaremski has downgraded Ryan Specialty Holdings (NYSE: RYAN) from Outperform to Market Perform, while significantly cutting the price target from $66.00 to $43.00. The downgrade, issued on February 25, 2026, represents a notable shift in outlook for the specialty insurance distribution company.
Why the Rating Changed
The downgrade from BMO Capital reflects a meaningful reassessment of Ryan Specialty’s near-term prospects. The reduction in price target — from $66 to $43, a cut of nearly 35% — signals that analyst Michael Zaremski sees substantially less upside for the stock than he did previously.
While specific detailed commentary from the analyst was limited in available coverage, several contextual factors likely contributed to this revised outlook:
- Valuation concerns: The sharp reduction in the price target suggests BMO Capital believes RYAN’s stock had been trading at levels that no longer reflect the company’s earnings trajectory or risk profile relative to peers.
- Insurance sector headwinds: Recent reporting indicates that the U.S. insurance sector is facing a challenging environment in 2025 and into 2026, with IPO activity thinning out and some companies weighing sales rather than public offerings — a sign of broader uncertainty in insurance-related markets.
- Shift from conviction to neutral: Moving from Outperform to Market Perform indicates that Zaremski no longer expects RYAN to outpace the broader market. The new $43 price target implies the stock is more fairly valued at current levels, with limited catalysts to drive significant appreciation in the near term.
It is worth noting that BMO Capital’s downgrade was part of a broader wave of analyst downgrades issued on the same day, which also affected companies such as Evolent Health, FedEx, Kroger, and others across multiple sectors.
Ryan Specialty’s Dividend Profile
For income-focused investors, Ryan Specialty currently pays an annual dividend of $0.52 per share, which translates to a dividend yield of approximately 1.34%. The most recent ex-dividend date was February 23, 2026.
While RYAN does offer a dividend, the yield is relatively modest and places the stock outside the range typically sought by dedicated dividend investors. The company’s appeal has historically been more growth-oriented, centered on its position as a leading specialty insurance distributor. With BMO Capital now taking a more cautious stance, investors may want to evaluate whether the current yield adequately compensates for the uncertainty reflected in the downgrade.
What This Means for Investors
BMO Capital’s move to Market Perform with a $43 price target suggests that the firm sees RYAN as fairly valued at best in the current environment. Investors holding or considering positions in Ryan Specialty should weigh this revised outlook alongside the company’s fundamentals, dividend payments, and the broader insurance sector landscape before making any decisions.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consult with a qualified financial advisor before making investment decisions.