Piper Sandler raised the firm’s price target on Trupanion to $45 from $38 and keeps a Neutral rating on the shares. With operating free cash flow sustainability now achieved for four straight quarters through Q2 along with capital benefits of pet insurance regulatory reclassification, the firm is migrating away from DCF and towards valuing shares like a traditional insurance distribution company, which would be based on adjusted operating income. This is also part driven by recent affirmation at investor day of hitting 15% subscription margin in Q4 with this for the entirety of Q4 and not just the month of December, Piper adds.
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Read More on TRUP:
- Trupanion price target raised to $40 from $30 at Stifel
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