Neptune Insurance stock initiated with Outperform rating by Evercore ISI

Investing.com - Evercore ISI initiated coverage on Neptune Insurance Holdings (NYSE:NP) with an Outperform rating and a $35.00 price target, representing a potential 32% upside from the current price of $26.37. According to InvestingPro data, the stock’s RSI indicates overbought territory, with shares showing historically high price volatility.

The research firm’s price target is based on a weighted average that assigns 75% to a "status quo" case and 25% to a National Flood Insurance Program (NFIP) upside case, applying a 34x EV/EBITDA multiple on Evercore’s 2027 adjusted EBITDA estimate. For context, Neptune’s current EV/EBITDA multiple stands at 54.92x, with the company valued at $3.64 billion by market capitalization.

Evercore cited Neptune’s "differentiated underwriting model with proven results" as one of the key factors supporting its positive outlook on the insurance provider.

The firm also highlighted Neptune’s growth momentum in what it described as "a niche end market with structural tailwinds" as another reason for the favorable rating.

Additional factors supporting the Outperform rating include "positive optionality from National Flood Insurance Program reform" and "various sources of upside in earnings power," according to Evercore’s analysis.

In other recent news, Neptune Insurance Holdings Inc. made its debut on the New York Stock Exchange at $22.50 per share. This opening price represents a 12.5% increase from its initial public offering (IPO) price of $20.00 per share. The IPO involved the sale of 18,421,053 shares of Class A common stock by certain selling securityholders. Neptune Insurance is now trading under the ticker symbol "NYSE:NP". These developments mark a significant milestone for the company as it enters the public market.

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