William Blair analyst Dylan Becker has maintained their bullish stance on XZO stock, giving a Buy rating on December 1.
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Dylan Becker’s rating is based on Exzeo Group, Inc.’s strong performance in its first quarter as a public company, which aligned with prior expectations and was bolstered by the successful integration of HCI’s premium onto its platform. Additionally, the company achieved its first wins with non-HCI customers, showcasing its ability to expand its client base.
Furthermore, Exzeo’s pipeline has experienced significant growth, tripling in size since its IPO, indicating a robust demand for its unique value proposition in the specialized homeowners underwriting market. The company’s diversification efforts beyond its core Florida market and across various stakeholder types are expected to support sustainable growth and improve financial metrics such as EBITDA and free cash flow margins. These factors contribute to Exzeo’s strong positioning to leverage growth and digital transformation trends in the U.S. homeowners space, justifying the Buy rating.
Becker covers the Technology sector, focusing on stocks such as Procore Technologies, Autodesk, and Guidewire. According to TipRanks, Becker has an average return of 9.5% and a 54.22% success rate on recommended stocks.
In another report released on December 1, Citizens JMP also initiated coverage with a Buy rating on the stock with a $27.00 price target.