Trupanion’s Growth Potential: Buy Rating Affirmed Amidst Positive Operational Trends

William Blair analyst Brandon Vazquez has maintained their bullish stance on TRUP stock, giving a Buy rating on April 16.

Brandon Vazquez has given his Buy rating due to a combination of factors that indicate Trupanion’s business is poised for growth. The recent quarterly results showed a slight improvement, suggesting that the company’s core operations have reached a low point and are beginning to recover. Key metrics such as the addition of new pets, subscriber base growth, and retention rates have all shown sequential improvement, which alleviates previous concerns about potential negative trends.
Vazquez believes that the company’s ability to balance margins and customer acquisition costs will enable it to accelerate growth in the upcoming quarters. Although this quarter’s performance alone may not completely dispel bearish views on the stock, it represents a positive development for optimistic investors. With the stock trading at 28 times the estimated EBITDA for 2025, Vazquez maintains an Outperform rating, anticipating that continued growth will bolster the stock’s performance throughout the year.