Ryan Tomasello, an analyst from KBW, maintained the Hold rating on Porch Group (PRCH – Research Report). The associated price target was raised to $6.00.
Ryan Tomasello has given his Hold rating due to a combination of factors influencing Porch Group’s current market position. Despite a better-than-expected adjusted EBITDA in the fourth quarter, the company missed its revenue targets, which suggests underlying challenges in its revenue generation capabilities.
Furthermore, while Porch Group has raised its guidance for 2025 and reiterated its long-term targets, the complexity of its valuation due to its unique business structure and high leverage remains a concern. The insurance segment, in particular, is seen as needing to demonstrate independent scalability before it can be fully valued. These factors contribute to the decision to maintain a Hold rating, reflecting a cautious stance on the stock’s potential for near-term gains.
Tomasello covers the Technology sector, focusing on stocks such as nCino, Porch Group, and AppFolio. According to TipRanks, Tomasello has an average return of -19.3% and a 23.64% success rate on recommended stocks.