Analysts have raised their price target for Hagerty to $12.75, citing anticipated margin expansion, mid-teens revenue growth, and operational benefits from State Farm conversions and rising retention rates heading into 2026.
Analyst Commentary
- Expectation of 2026 as an inflection year driven by rising underwriting economics and retention rates.
- Anticipated ramp-up in State Farm conversions contributing to growth.
- Operational leverage from targeted investments expected to drive margin expansion.
- Projected mid-teens revenue growth compounded by increasing profitability.
- Bullish analysts highlight EPS estimates 2%-6% above consensus, viewing Hagerty as an overlooked stock by the market.
What's in the News
- Hagerty launched the Safe Storage Concierge pilot program in Florida, offering free secure storage for collector vehicles during severe weather to insured members, with services powered by Way’s digital platform and strong customer demand indicated by survey results.
- The Motorlux event opened Monterey Car Week with over 4,250 attendees, featuring world-class cars, aviation displays, and record-setting auctions led by Broad Arrow, a Hagerty Company, totaling over $57.4 million in sales and eight new auction world records for modern collectible cars.
- Multiple lock-up agreements for Class A Common Stock, Restricted Stock Units, and Series A Convertible Preferred Stock will end, covering shares held by insiders and major shareholders, restricting sales for 91 days.
- Hagerty completed a $90.598 million follow-on equity offering with 9.7 million Class A shares at $9.34 per share, following a prior offer to sell 8.7 million shares.
- The company raised 2025 full-year guidance, now expecting revenue of $1,356–$1,368 million (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 $12.00 to $12.75.
- The Future P/E for Hagerty has significantly fallen from 22.50x to 5.76x.
- The Consensus Revenue Growth forecasts for Hagerty has significantly fallen from 11.1% per annum to 4.7% per annum.
Disclaimer
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