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HIPO: Share Buybacks Will Drive Upside Potential In Coming Quarters

Baldwin Group Partnership And AI Will Expand Market Access

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HIPO
AnalystConsensusTarget
Not Invested
Published 26 Mar 2025

Update shared on 09 Dec 2025

Previous
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AnalystConsensusTarget's Fair Value
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1Y
17.5%
7D
-0.6%

Analysts have modestly adjusted their price target on Hippo Holdings to reflect refined assumptions for the discount rate, long-term revenue growth, and profit margin. However, the implied fair value remains effectively unchanged at approximately 40.33 per share.

What's in the News

  • Issued fourth quarter 2025 guidance with expected revenue of $117 million to $120 million and net income of $1 million to $5 million (corporate guidance).
  • Raised full year 2025 revenue guidance to $465 million to $468 million, reflecting stronger premium growth (corporate guidance).
  • Increased full year 2025 net income guidance to $53 million to $57 million, citing improved loss ratios and cost discipline (corporate guidance).
  • Completed repurchase of 1,572,345 shares, or 6.24 percent of outstanding shares, for $31.84 million under the March 13, 2023 buyback program (buyback update).
  • Signaled openness to acquisitions that diversify and accelerate portfolio growth toward more than $2 billion of premium over three years (earnings call commentary).

Valuation Changes

  • Fair Value: Unchanged at approximately 40.33 per share, indicating no material impact from updated assumptions.
  • Discount Rate: Edged down slightly from 6.956 percent to 6.956 percent, a negligible change in the cost of capital input.
  • Revenue Growth: Increased marginally from 17.35 percent to 17.35 percent, reflecting an essentially stable long term growth outlook.
  • Net Profit Margin: Improved fractionally from 13.13 percent to 13.13 percent, with changes too small to alter the earnings profile meaningfully.
  • Future P/E: Remained effectively flat at about 1,343.5x, suggesting the valuation multiple is unchanged under the revised model.

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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.