- The stock price of Hippo Holdings Inc (NYSE: HIPO) increased by 3.54% in the most recent trading session. This is why it happened.
The stock price of Hippo Holdings Inc (NYSE: HIPO) increased by 3.54% in the most recent trading session. Investors are responding positively to a bullish research report.
JMP Securities analyst Matthew Carletti initiated coverage on Hippo Holdings with a “Market Outperform” rating. And Carletti assigned the company a price target of $4, which imputes a 102.02% upside to the stock price.
“We believe shares of HIPO are attractively valued, currently at an EV <$250 mln. While we acknowledge Hippo’s struggles since becoming a publicly-traded company in mid-2021, compounded by difficult trading conditions in recent months for both de-SPACs (HIPO’s deal closed August 2) and SMID-cap technology stocks, we believe the shares’ underperformance (-80% since merger closing vs. +2% for S&P 500 and -1% for NASDAQ 100) has been overdone,” wrote Carletti in a research note yesterday. “At yesterday’s $1.98 closing price, we calculate the company’s enterprise value (EV) at $248 mln. Our $4 price target implies an ~$1.3 bln EV and is based upon ~1x 2023E EV/GWP, ~7x 2023E EV/AGP, and our discounted ‘at scale’ earnings analysis.”
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