Michael Zaremski, an analyst from BMO Capital, has initiated a new Hold rating on Hagerty Inc Class A (HGTY).
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Michael Zaremski’s rating is based on a combination of factors that highlight both the potential and constraints of Hagerty Inc Class A. The company stands out in the auto insurance industry by focusing on classic cars, which allows it to build strong customer relationships and differentiate itself from more commoditized insurers. Hagerty is poised for significant premium growth due to its expanded partnership with State Farm, improved economic structure with Markel, and the introduction of new products.
Despite these positive prospects, Zaremski’s Hold rating reflects some caution. The valuation of Hagerty is currently constrained by its recent strong market performance and a potential accounting-related challenge anticipated in 2026. This accounting transition could create temporary revenue and EBITDA headwinds, which tempers near-term enthusiasm. However, the long-term outlook remains positive, with expectations of robust revenue growth driven by strategic partnerships and market expansion.