Piper Sandler raises Trupanion stock price target to $67 on strong results

Published 08/08/2025, 12:32
Piper Sandler raises Trupanion stock price target to $67 on strong results

Investing.com - Piper Sandler raised its price target on Trupanion, Inc. (NASDAQ:TRUP) to $67.00 from $62.00 on Friday, while maintaining an Overweight rating following the pet insurer’s quarterly results. Currently trading at $48.75 with a market capitalization of $2.1 billion, the company appears slightly undervalued according to InvestingPro Fair Value analysis.

The research firm cited "really strong results" for the company, which currently faces high short interest of approximately 20% within the insurance sector. Trupanion reported better-than-expected performance across key metrics including subscription revenue, enrolled pets, and adjusted operating income. The company has demonstrated solid revenue growth of 14% over the last twelve months, reaching $1.32 billion. InvestingPro analysis reveals 8 additional key insights about TRUP’s performance.

Trupanion’s customer retention improved by 1 basis point in the second quarter of 2025, following a 3 basis point improvement in the first quarter. This marks the first time since the first quarter of 2021 that the company has delivered consecutive quarters of retention improvement.

Piper Sandler identified the retention improvement as a key indicator that Trupanion’s insured customer base is responding positively to pricing increases. The firm characterized Trupanion as following a "classic personal lines insurance story" where rate adequacy is achieved as input costs normalize.

The research firm expects Trupanion shares to react favorably to these results, noting the company is demonstrating both top-line and bottom-line outperformance.

In other recent news, Trupanion, Inc. reported its second-quarter 2025 earnings, significantly surpassing both earnings and revenue forecasts. The company achieved an earnings per share (EPS) of $0.22, which was well above the expected -$0.04, representing a 650% surprise. Revenue for the quarter reached $353.6 million, exceeding the forecast of $346.74 million by 1.97%. In light of these results, BofA Securities raised its price target for Trupanion to $67 from $56, while maintaining a Buy rating. The positive earnings report and subsequent analyst upgrade highlight the company’s strong financial performance. These developments reflect Trupanion’s ability to exceed market expectations. Investors will likely be watching closely to see how the company continues to perform in upcoming quarters.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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