William Blair analyst Adam Klauber has maintained their neutral stance on GSHD stock, giving a Hold rating on October 9.
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Adam Klauber has given his Hold rating due to a combination of factors, including GooseHead Insurance’s core growth and financial performance. The company has shown a slight improvement in core growth, reaching 14%, which aligns with expectations and reflects better productivity and client retention. However, this growth is partly offset by moderating price increases.
Despite the acceleration in new business revenue growth to 22% and adjusted EBITDA surpassing estimates, concerns remain regarding the sustainability of core growth. The stock is trading at 29 times its 2026 EBITDA, which suggests a high valuation. Additionally, the expected incremental costs, such as the $11 million investment in the new Digital Agent initiative, are likely to keep margins relatively flat, leading to a lowered adjusted EPS estimate. These factors contribute to the decision to maintain a Hold rating, as the stock is seen as a wait-and-see opportunity until more consistent growth is evident.
In another report released on October 9, J.P. Morgan also maintained a Hold rating on the stock with a $85.00 price target.