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Investing.com - Keefe, Bruyette & Woods reduced its price target on Goosehead Insurance Inc. (NASDAQ:GSHD) to $95.00 from $102.00 while maintaining an Outperform rating.
The brokerage cited higher investment spending as a key factor in the price target reduction, noting these investments would create a "$0.25/year drag to EPS" for 2026 and 2027.
Goosehead reported adjusted EBITDA of $29.7 million, exceeding both the firm’s estimate of $29.2 million and the consensus forecast of $28.0 million, primarily due to lower expenses.
The insurance company maintained its fiscal year 2025 guidance ranges, projecting 15-22% written premium growth and 11-22% revenue growth, with margins excluding contingent commissions expected to contract slightly.
For 2026, Keefe, Bruyette & Woods noted Goosehead’s positive outlook regarding product availability, which should lead to accelerating written premium and core revenue growth, but adjusted its 2026 and 2027 estimates downward to reflect the impact of increased investment spending on margins.
In other recent news, Goosehead Insurance reported its third-quarter 2025 earnings, which showed mixed results. The company posted operating earnings per share of $0.46, surpassing some expectations but slightly missing the consensus forecast of $0.47. Revenue for the quarter was $90.43 million, falling short of the anticipated $92.62 million. Despite these misses, the company achieved better-than-expected renewal royalty fees of $45.7 million and new business commissions of $7.5 million, which helped offset lower renewal commissions totaling $19.7 million. Citizens maintained a Market Outperform rating on Goosehead Insurance, with a price target of $140, following the earnings report. The rating reflects a positive outlook, even though the company’s financial results were mixed. These developments indicate that analysts and investors are closely watching Goosehead Insurance’s performance and future prospects.
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