Hippo stock price target raised to $40 from $35 at JMP on profitability

Investing.com - JMP Securities raised its price target on Hippo Holdings Inc (NYSE:HIPO) to $40 from $35 while maintaining a Market Outperform rating following the company’s strong second-quarter results. According to InvestingPro data, the stock has surged 22% in the past week, with analyst targets ranging from $26 to $41.

The insurance technology company achieved net income positivity for the first time, reporting a $1 million gain versus analyst expectations of a $17-22 million loss. Hippo’s consolidated net loss ratio improved significantly to 47%, a 46 percentage point year-over-year improvement. InvestingPro analysis reveals the company maintains a GOOD financial health score, with 8 additional exclusive ProTips available for subscribers.

Revenue grew 31% to $117 million, exceeding analyst estimates of $113-115 million, contributing to an impressive 55.8% revenue growth over the last twelve months. The growth was driven by higher risk retention in hybrid fronting programs and a shift away from quota-share reinsurance in HHIP.

Operating expenses decreased by $6 million (16%), falling from 46% of revenue in the second quarter of last year to 30% this quarter, demonstrating the company’s ability to scale efficiently.

JMP also highlighted Hippo’s recently announced partnership with The Baldwin Group, which included selling its homebuilder distribution network to Westwood Insurance Agency for $100 million, a move expected to drive premium growth and diversification by tripling access to new home closings.

In other recent news, Hippo Holdings Inc. reported its second-quarter 2025 earnings, achieving its first-ever positive net income from operating activities. The company announced a net income of $1 million, alongside a significant 31% year-over-year revenue growth, reaching $117 million. These results highlight the company’s improved financial performance. The announcement has drawn attention from investors, reflecting optimism about Hippo Holdings’ strategic initiatives. While there was no mention of any mergers or acquisitions, the financial results have been a focal point for stakeholders. There were no recent analyst upgrades or downgrades reported for Hippo Holdings. The earnings report marks a notable milestone for the company as it navigates its financial and strategic landscape.

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