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State Farm Partnership And European Auctions Will Fuel Future Markets

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HGTY
AnalystConsensusTarget
Not Invested
Published 03 Sep 2024

Update shared on28 Aug 2025

Fair value Increased 9.09%
AnalystConsensusTarget's Fair Value
US$12.00
4.3% overvalued intrinsic discount
10 Sep
US$12.52
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1Y
12.9%
7D
6.3%

Analysts have raised Hagerty's price target to $12.00, citing improved underwriting, higher customer retention, accelerating State Farm conversions, and projected mid-teens growth with margin expansion driving outperformance.


Analyst Commentary


  • Expectation of 2026 as a key inflection year driven by improved underwriting economics and rising retention rates.
  • Anticipated acceleration of State Farm customer conversions boosting growth.
  • Operating leverage gains as recent investments begin to yield results.
  • Projected mid-teens compounded growth rate supported by margin expansion.
  • Bullish analysts’ EPS estimates are 2%-6% above consensus through 2027, highlighting potential outperformance.

What's in the News


  • Hagerty, in partnership with Way, launched the Safe Storage Concierge pilot in Florida, providing five days of secure storage for collector vehicles during severe weather at no extra cost to insured members, facilitated by Way’s digital platform.
  • Motorlux, co-hosted by Hagerty, delivered a sold-out Monterey Car Week opening, featuring luxury cars, new vehicle debuts, record-setting auctions ($57.4M in sales), and support for charitable foundations.
  • 90,715,648 Class A Common Stock, certain Restricted Stock Units, and Series A Convertible Preferred Stock are subject to a 91-day lock-up ending 6 November 2025, restricting sales and transfers by key stakeholders.
  • Hagerty completed a $90.6 million follow-on offering of 9.7 million Class A shares at $9.34 per share, having previously filed for an 8.7 million share offering.
  • Raised 2025 earnings guidance to total revenue of $1.356–$1.368 billion (13–14% growth) and net income of $112–$120 million (43–53% growth).

Valuation Changes


Summary of Valuation Changes for Hagerty

  • The Consensus Analyst Price Target has risen from $11.00 to $12.00.
  • The Future P/E for Hagerty has significantly fallen from 31.31x to 5.94x.
  • The Net Profit Margin for Hagerty has significantly risen from 8.23% to 13.65%.

Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.