Analyst Joshua Shanker from Bank of America Securities reiterated a Sell rating on Neptune Insurance Holdings, Inc. Class A and increased the price target to $22.50 from $21.00.
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Joshua Shanker has given his Sell rating due to a combination of factors impacting Neptune Insurance Holdings, Inc. Class A. Despite the company’s healthy margins and growth post-IPO, Shanker believes that these positive aspects are already reflected in the current share price, which limits the potential for further appreciation. The company’s third-quarter revenue and policy persistency exceeded forecasts, but the benefits from these improvements are seen as temporary, particularly due to the unique circumstances of the U.S. Federal Government shutdown affecting the insurance market.
Moreover, while the management’s revenue guidance for 2026 aligns with consensus expectations, Shanker notes that the anticipated growth is modest and not sufficient to justify the current stock price. His price objective of $22.50, derived from a discounted cash flow model, suggests a lower valuation than the current trading price of $25.16. This valuation, combined with the limited growth prospects, leads Shanker to maintain an Underperform rating, advising against purchasing shares at their current level.
In another report released on October 27, Mizuho Securities also initiated coverage with a Sell rating on the stock with a $23.00 price target.