Hagerty’s analyst price target was recently raised by $1 to $15 per share. Analysts cite the company’s strong position, future growth drivers, and a likely turning point for margins by 2026 as key factors behind this upward revision.
Analyst Commentary
Recent analyst research on Hagerty highlights both notable areas of optimism and lingering concerns tied to the company’s business model, competitive positioning, and path toward improved profitability.
Bullish Takeaways- Bullish analysts see 2026 as a key inflection point and anticipate meaningful margin improvement and operational efficiency gains.
- Hagerty is viewed as a global leader in specialty insurance, benefiting from macroeconomic trends and structural drivers that are expected to support long-term growth.
- The company’s established presence in the classic and enthusiast vehicle market is cited as a source of competitive advantage and limited direct competition.
- Analysts note the impact of expanding partnerships, such as with State Farm, which could accelerate premium growth and broaden the revenue base.
- Bearish analysts highlight concerns around current valuation and view shares as fairly valued in the near term unless margins expand more rapidly.
- There is some caution over near-term catalysts, with one key risk being a potential “accounting-related air-pocket” in 2026 that could temporarily impact results.
- Some believe that despite the company’s diverse revenue streams from marketplace and media, a clear path to significant profitability improvements is still needed for sustained share appreciation.
What's in the News
- Hagerty, Inc. raised its earnings guidance for 2025, projecting total revenue between $1.368 billion and $1.38 billion and net income between $124 million and $129 million. This is an increase from the prior forecast of $1.356 billion to $1.368 billion in revenue and $112 million to $120 million in net income. (Key Developments)
- Hagerty announced a new partnership with Liberty Mutual Insurance to provide enhanced collectible car insurance to Liberty Mutual and Safeco customers. This arrangement is set to begin in 2026. Liberty Mutual is the seventh largest auto insurer in the United States. (Key Developments)
Valuation Changes
- Fair Value: Unchanged at $13.71 per share, reflecting stability in recent fair value assessments.
- Discount Rate: Decreased marginally from 6.97% to 6.96%, indicating slightly reduced perceived risk in future cash flows.
- Revenue Growth: Increased from 3.79% to 4.54%, suggesting improved expectations for future sales expansion.
- Net Profit Margin: Declined markedly from 20.99% to 15.59%, pointing to lower anticipated profitability.
- Future P/E: Risen from 6.47x to 8.52x, indicating that shares are expected to be valued at a higher multiple of future earnings.
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