Competition RisksThere are downside risks due to low barriers to entry, potential competition from copycats, and government reforms.
Market Growth ChallengesFlood insurance penetration rates are low, with less than 13% in high-risk states, presenting a challenge for market growth.
Valuation ConcernsNeptune Insurance Holdings is rated at Underperform with a price objective of $21, indicating the current valuation may be too high.