Bank of America Securities analyst Joshua Shanker reiterated a Buy rating on Trupanion yesterday and set a price target of $67.00.
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Joshua Shanker has given his Buy rating due to a combination of factors that highlight Trupanion’s potential for growth and improved financial performance. The company’s second-quarter earnings for 2025 significantly exceeded expectations, primarily due to a one-time realized gain from an exchange of preferred interests. This unexpected gain contributed to an EPS of $0.22 per share, surpassing both the forecasted $0.11 and the consensus expectation of a $0.02 loss.
Additionally, while revenue was slightly below Shanker’s forecast, it still surpassed management’s guidance, indicating a positive trend. Trupanion’s focus on improving retention rates, despite recent price increases, shows promise as inflation begins to slow down. Furthermore, the company is poised for growth in the second half of 2025 with plans to increase pet acquisition costs, which is expected to drive pet count growth. With a revised price objective of $67, Shanker believes that the current valuation presents a buying opportunity, especially with anticipated improvements in pet count and overall margins.
Shanker covers the Financial sector, focusing on stocks such as Progressive, Chubb, and Brown & Brown. According to TipRanks, Shanker has an average return of 8.6% and a 60.49% success rate on recommended stocks.