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Investing.com - Benchmark has reiterated its Buy rating and $21.00 price target on Porch Group Inc. (NASDAQ:PRCH), maintaining its positive outlook despite recent market challenges. This target represents a 126% upside from the current price of $9.29, aligning with the broader analyst consensus which remains strongly bullish at 1.25 (Strong Buy) according to InvestingPro data.
The research firm acknowledged that Porch Group faced difficulties in the public markets following its third-quarter results, which Benchmark described as "not fundamentally disastrous" but missing "the messaging mark by a wide margin."
Benchmark suggested that Porch Group appears to be finding a near-term bottom and that the company’s EBITDA outlook may actually be better than it was before the latest earnings report. InvestingPro data shows the RSI suggests the stock is in oversold territory, potentially supporting this bottom formation thesis. The company reported $65.73 million in EBITDA over the last twelve months.
The firm expressed improved understanding of Porch Group’s surplus calculations and the reasoning behind the company’s decision to moderate RWP (recurring warranty premiums) growth in the fourth quarter.
Benchmark projected these factors could lead to faster growth rates and "substantially accretive M&A in 2026," potentially occurring without capital outlay from the company.
In other recent news, Porch Group Inc. reported its third-quarter 2025 financial results, exceeding revenue expectations with $118.08 million compared to the forecasted $111.13 million, marking a 6.25% surprise. Despite the revenue beat, the company faced a shortfall in earnings per share, reporting -$0.10 against an expected -$0.03. Following these results, B.Riley adjusted its price target for Porch Group, increasing it to $19.00 from the previous $16.00, while maintaining a Buy rating. B.Riley’s revised target is based on Porch Group’s strong growth profile and high margins, which are seen as justifying an above-peer valuation. The firm notes that Porch Group’s closest competitors trade at approximately 23x 2026E EV/EBITDA multiple, whereas Porch Group is valued at a 26x multiple. These developments highlight Porch Group’s financial performance and market positioning, reflecting analyst confidence in its growth trajectory.
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