American Integrity Insurance initiated with a Perform at Oppenheimer

Oppenheimer initiated coverage of American Integrity Insurance (AII) with a Perform rating. The firm says that while it has the utmost respect for the company’s long-term margin performance, it thinks the current fundamentals will challenge near-term EPS growth. Following recent legislative changes, Florida homeowners’ market has gone from being one of the most challenging to being one of the best. But with this has come an intensified competitive environment, underpinning Oppenheimer’s view that organic growth opportunities will be difficult and current margins are likely to represent peak levels. While shares of recent IPO trade at a discount to peers, the firm believes peer-group-rich multiples fully reflect Florida’s turnaround, and expect multiple compression, especially in light of the group’s typical underperformance during hurricane season.