BMO Capital Markets has upgraded Verisk, citing an attractive entry point due to overblown AI and valuation concerns. The data and analytics provider's stock has declined recently, trading at levels last seen in 2017. The firm believes the market has overly penalized Verisk, creating an opportunity for investors.

Concerns surrounding insurance pricing and the impact of generative AI on the industry have weighed on Verisk. BMO sees limited disruption risk, emphasizing the company's proprietary data, which includes decades of insurance loss data. Additionally, regulatory hurdles for AI-driven pricing models further protect Verisk's position.

BMO anticipates Verisk's March 2026 investor day as a potential catalyst, where the company is expected to outline its AI strategy. The firm also suggests that noise around the abandoned AccuLynx acquisition may fade. With the stock down, investors may see this as a chance.

Verisk provides data analytics to the insurance industry. The company's data helps insurance companies assess risk. It is a key player in the industry, and its performance is closely tied to the health of the insurance market. The upgrade suggests BMO believes the market is mispricing its long-term prospects.