Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - Cantor Fitzgerald maintained its Overweight rating and $125.00 price target on Goosehead Insurance Inc. (NASDAQ:GSHD) on Thursday. According to InvestingPro data, the stock is currently trading significantly below its Fair Value, with the shares down about 39% over the past six months and hovering near their 52-week low of $66.08.
The research firm expressed confidence in Goosehead despite the stock being the worst performer in the third quarter among its peer group.
Cantor Fitzgerald noted that Goosehead should actually benefit from increasing competition in personal lines insurance, while a clean wind season provides additional positive factors for the company’s homeowners insurance business.
The firm acknowledged that concerns about third-quarter margins are reasonable, as softness in this area has already been "relatively well telegraphed" to investors.
Cantor Fitzgerald suggested that these near-term margin concerns overlook longer-term potential, stating that 2026 is "setting up far better" for the insurance company.
In other recent news, Goosehead Insurance has experienced several developments affecting its outlook. Truist Securities has lowered its price target for Goosehead Insurance to $85.00 from $90.00, citing concerns over third-quarter new sales growth, which is expected to be in the mid-teens, falling short of the consensus expectation of 21%. Keefe, Bruyette & Woods also adjusted their price target, reducing it to $120.00 from $130.00, after Goosehead’s AEBITDA of $29.2 million slightly missed the consensus estimate of $30.0 million. Additionally, BMO Capital decreased its price target to $110.00 from $142.00, following second-quarter results that showed misses on both growth and margin key performance indicators. Meanwhile, Citizens JMP has reiterated its Market Outperform rating with a $150.00 price target, maintaining a positive outlook after engaging with Goosehead’s management. In expansion news, Goosehead Insurance has broadened its partnership with Nan & Company Properties to create Altivo Insurance, integrating home insurance options into real estate transactions. These recent developments highlight the varied perspectives of analysts and strategic moves by Goosehead Insurance.
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