Keefe, Bruyette & Woods lowers Goosehead Insurance stock price target

Published 27/07/2025, 07:36
Keefe, Bruyette & Woods lowers Goosehead Insurance stock price target

Investing.com - Keefe, Bruyette & Woods lowered its price target on Goosehead Insurance Inc . (NASDAQ:GSHD) to $120.00 from $130.00 on Sunday, while maintaining an Outperform rating on the stock.

The price target reduction follows Goosehead’s AEBITDA of $29.2 million, which slightly missed the consensus estimate of $30.0 million, primarily due to higher expenses.

For fiscal year 2025, Goosehead has revised its written premium growth guidance downward to 15-22% from the previous 22-28%, while maintaining its revenue growth forecast at 11-22%.

The company now expects margins to contract year-over-year, a change from its previous guidance of slight expansion.

Despite lowering the price target, Keefe, Bruyette & Woods applied a slightly higher multiple of 35x EV/AEBITDA on 2026 estimates, reflecting the premium it expects investors to place on high-growth brokers as the broader industry faces slowing organic growth.

In other recent news, Goosehead Insurance reported its second-quarter 2025 earnings, revealing an earnings per share (EPS) of $0.49, which fell slightly short of the consensus forecast of $0.50. However, the company’s total revenue reached $94 million, surpassing expectations. Despite the revenue beat, BMO Capital lowered its price target for Goosehead Insurance to $110 from $142, citing misses on growth and margin key performance indicators. Similarly, Piper Sandler downgraded the stock from Overweight to Neutral, reducing its price target to $109 due to concerns about slower growth. In contrast, JMP Securities maintained a Market Outperform rating with a price target of $150, acknowledging the company’s revenue performance. Additionally, Goosehead Insurance has formed a strategic partnership with Baird & Warner Real Estate, introducing the Adaptive Insurance Agency to integrate insurance services into the homebuying process. This collaboration aims to provide homebuyers with insurance options during real estate transactions. These developments highlight the varied perspectives on Goosehead Insurance’s growth potential and market positioning.

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