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Investing.com -- Goldman Sachs initiated coverage of Porch Group with a Buy rating and a $21 price target, saying the company’s data-driven insurance and software platform is well-positioned for revenue growth and margin expansion.
Porch offers homeowners insurance, software and consumer services linked to the homebuying process, spanning inspections, moving, and claims.
Goldman said the company’s ability to combine proprietary inspection data with historical claims and third-party information gives it an edge in pricing policies for lower-risk properties, helping improve profitability.
The brokerage highlighted a drop of about 1700 basis points in attritional loss ratios over the past two years and noted that Porch’s insurance operations are generating over 30% EBITDA margins.
Its reciprocal insurance entity has produced roughly $50 million in net income over the last 12 months.
While Goldman does not expect Porch’s insurance business to rival top carriers in scale or brand recognition, it said the company’s niche advantages in certain geographies and risk segments could underpin strong growth.
It also pointed to Porch’s new reciprocal exchange structure, which provides greater capital flexibility and supports share gains in insurance distribution.
Goldman acknowledged that Porch faced significant challenges in the past four to five years, much of them beyond management’s control, but said the company is now positioned for profitable expansion.
Shares have risen 238% this year compared with a 10% gain in the S&P 500, yet still trade at 19 times 2026 enterprise value to EBITDA, leaving room for upside, it added.