Stifel maintains Hold rating on Trupanion stock amid strategic shifts

Published 22/09/2025, 13:36
Stifel maintains Hold rating on Trupanion stock amid strategic shifts

Investing.com - Stifel has reiterated its Hold rating and $45.00 price target on Trupanion, Inc. (NASDAQ:TRUP), the pet insurance provider, following the company’s latest strategic pivot. The stock currently trades near $45.19, with InvestingPro data showing revenue growth of ~13% in the last twelve months and a "GOOD" overall Financial Health score.

The research firm expressed surprise at what it described as "management’s continued lack of conviction around the correct long-term strategy for the company," noting Trupanion’s shifting approach to coverage options over the years. Despite strategic uncertainties, InvestingPro analysis indicates the company maintains strong liquidity with a current ratio of 1.69.

Stifel pointed out that Trupanion initially focused exclusively on 90% coverage plans, emphasizing simplicity and transparency, but subsequently lost market share to competitors offering lower-cost alternatives.

Despite previous plans to keep more affordable options like PHI/Furkin separate from the Trupanion brand, the company has now decided to market these plans under the Trupanion umbrella to improve conversion rates, marking another strategic shift.

While Stifel acknowledged some positive developments, including intact medical loss ratio, strong customer retention, and increasing automation, it highlighted that Trupanion has lost market share for seven consecutive years as the company continues to search for the right strategy.

In other recent news, Trupanion, Inc. reported impressive second-quarter 2025 earnings, surpassing both earnings and revenue expectations. The company achieved an earnings per share (EPS) of $0.22, significantly outperforming the anticipated -$0.04, which marked a 650% surprise. Trupanion’s revenue reached $353.6 million, exceeding the forecast of $346.74 million by 1.97%. Following these strong results, Piper Sandler raised its price target for Trupanion to $67, maintaining an Overweight rating. Similarly, BofA Securities increased its price target for the company to $67 from $56, while upholding a Buy rating. Both firms highlighted Trupanion’s better-than-expected performance across key metrics, including subscription revenue and adjusted operating income. These developments reflect the company’s solid position in the market, despite facing a high short interest of approximately 20% within the insurance sector.

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