William Blair analyst Adam Klauber has maintained their neutral stance on GSHD stock, giving a Hold rating yesterday.
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Adam Klauber has given his Hold rating due to a combination of factors influencing GooseHead Insurance’s current and future performance. The company’s core revenue showed an 18% growth, which aligns with expectations, but this figure includes a one-time benefit from recovering past due renewal commissions. Excluding these contingents, the adjusted EBITDA margin fell short of estimates due to higher-than-anticipated general and administrative costs.
New business revenue growth accelerated but still fell below expectations, and the growth in producers also missed estimates due to weaker franchise expansion. Productivity growth remained flat, hindered by a higher proportion of less-experienced agents and a challenging housing market. Although management has outlined promising strategic growth initiatives, these are expected to bear fruit in the longer term, beyond 2027. With shares trading at a significant premium compared to peers and limited near-term upside potential, Klauber maintains a Hold rating on the stock.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $107.00 price target.