Analysts have raised their price target for Hippo Holdings from $37.00 to $40.33, citing revised assumptions on fair value and future profitability metrics, even though revenue growth expectations have moderated.
What's in the News
- Hippo Holdings provided fourth quarter 2025 guidance, projecting revenue between $117 million and $120 million and net income between $1 million and $5 million (Company Announcement).
- The company raised full year 2025 guidance, increasing expected revenue to a range of $465 million to $468 million and net income to between $53 million and $57 million, citing stronger top-line growth and improved expense discipline (Company Announcement).
- Hippo Holdings completed repurchases totaling 1,572,345 shares, representing 6.24% of the company, for $31.84 million under the buyback initiated in March 2023 (Company Announcement).
- Leadership indicated an interest in future acquisitions to diversify and expand their portfolio, emphasizing the use of capital for both organic growth and potential acquisition opportunities (Third Quarter 2025 Earnings Call).
Valuation Changes
- Fair Value Estimate: Increased from $37 to $40.33, reflecting analyst optimism about future fundamentals.
- Discount Rate: Increased slightly from 6.78% to 6.96%, indicating a marginally higher required return on investment.
- Revenue Growth: Decreased significantly from 23.41% to 17.35%, as expectations for growth have tempered.
- Net Profit Margin: Declined sharply from 4.59% to 0.13%, suggesting downward revisions in profitability projections.
- Future P/E Ratio: Rose from 33.1x to 1343.5x, driven by substantially reduced projected earnings.
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