Joshua Shanker, an analyst from Bank of America Securities, reiterated the Sell rating on GooseHead Insurance. The associated price target remains the same with $43.00.
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Joshua Shanker has given his Sell rating due to a combination of factors impacting GooseHead Insurance’s financial outlook. The company’s third-quarter results showed a deceleration in core revenue growth, dropping to 14% from 18% in the first half of the year. Although new commissions and royalties exceeded expectations, the overall revenue was slightly below projections due to a softer pricing environment, which also led to a renewal revenue miss.
Furthermore, while management anticipates revenue acceleration in 2026, the challenges posed by declining premium retention and modest premium per policy growth suggest difficulties in achieving this target. Shanker also notes that the company’s shares are trading significantly above his price objective of $43, based on a discounted cash flow valuation. This substantial downside potential relative to the current trading price supports his Underperform rating.
GSHD’s price has also changed moderately for the past six months – from $103.220 to $68.650, which is a -33.49% drop .