Gold prices hold sharp gains as soft US jobs data fuels Fed rate cut bets
On Monday, BMO Capital Markets adjusted its outlook on Goosehead Insurance Inc . (NASDAQ:GSHD), reducing the price target from $148.00 to $142.00, while maintaining a Market Perform rating on the company’s shares. The revision comes as the firm anticipates a decrease in written premiums and core revenue, leading to a revision of Goosehead’s EBITDA forecasts for the years 2025 to 2027. According to InvestingPro data, four analysts have recently revised their earnings expectations downward, though the company maintains a strong financial health score of "GREAT" with current EBITDA at $76.72M.
The firm’s analysts project a downward adjustment in the expected growth of written premiums for Goosehead Insurance. The new estimates predict growth rates of 24% for 2025, 25% for 2026, and 24% for 2027. These figures reflect a decrease from the previously estimated growth rates of 27% and 28% for the respective years. The company has demonstrated solid revenue growth of 21.87% over the last twelve months, with InvestingPro analysis suggesting the stock is currently trading slightly below its Fair Value.
The anticipated reduction in written premiums has also led BMO Capital Markets to adjust Goosehead’s total premium forecast for 2025. The new expectation positions the company’s total premium towards the lower half of the provided guidance range, a shift from the top-end of the range that was previously expected.
The adjustments made by BMO Capital Markets are based on a detailed analysis of the factors influencing Goosehead’s written premiums. According to the firm, the reasons behind the lower written premium vary by year, although specific details were not disclosed in the summary provided.
Despite the lowered price target, BMO Capital Markets continues to hold a Market Perform rating on Goosehead Insurance, indicating a neutral stance on the stock’s near-term performance. The company and its investors will likely monitor these revised forecasts closely as they plan for the coming years. With a market capitalization of $3.74B and a P/E ratio of 74.01, detailed analysis and additional insights are available in the comprehensive Pro Research Report on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.
In other recent news, Goosehead Insurance reported mixed results for the first quarter of 2025. The company’s earnings per share (EPS) exceeded expectations, reaching $0.28, surpassing JMP’s projection of $0.20 and the consensus estimate of $0.22. This was largely due to a tax benefit and higher corporate channel contingent commissions. However, total revenue fell short, coming in at $75.8 million compared to JMP’s forecast of $78.6 million and the consensus of $78.1 million. Adjusted EBITDA also missed expectations, reported at $15.5 million against JMP’s expectation of $18.2 million. Despite these setbacks, total written premiums reached $1 billion, marking a 22% year-over-year increase. JMP analysts maintained their Market Outperform rating and $150 price target for Goosehead Insurance, reflecting continued confidence in the stock. The company also announced plans for geographic expansion and franchise quality improvements as key growth drivers.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.