Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - Citizens JMP has reiterated its Market Outperform rating and $150.00 price target on Goosehead Insurance Inc. (NASDAQ:GSHD), representing significant upside from the current price of $74.94. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value assessment.
The firm maintained its positive outlook after spending a day with Goosehead management visiting investors in Boston earlier this week.
Citizens JMP believes that the company’s core second-quarter growth of approximately 13% will prove to be a trough, with a significant acceleration expected in coming quarters back toward the upper-20s to lower-30s percentage range.
The research firm noted increased confidence in the long-term prospects for the business, alongside continued signs of an upward inflection in growth building in the near term.
Citizens JMP also highlighted Goosehead’s already strong EBITDA margins, which it believes likely have room for further improvement.
In other recent news, Goosehead Insurance has reported several notable developments. Analysts at Truist Securities and Keefe, Bruyette & Woods have both lowered their price targets for Goosehead Insurance, citing concerns over sales growth and higher expenses. Truist Securities adjusted its price target to $85.00, expecting third-quarter sales growth to be in the mid-teens, below the 21% consensus expectation. Meanwhile, Keefe, Bruyette & Woods reduced their target to $120.00 after Goosehead’s AEBITDA of $29.2 million fell short of the $30.0 million estimate.
Additionally, BMO Capital has also revised its price target for Goosehead Insurance, lowering it to $110.00 following second-quarter results that missed growth and margin expectations. Beyond financial assessments, Goosehead Insurance has expanded its strategic partnerships. The company has teamed up with Nan & Company Properties to form Altivo Insurance, integrating home insurance into real estate transactions. Furthermore, Goosehead has partnered with Baird & Warner Real Estate to create Adaptive Insurance Agency, offering insurance services during the homebuying process. These partnerships aim to enhance Goosehead’s service offerings in the real estate sector.
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