JMP Securities Raises Price Target for Hippo Holdings (HIPO) to $40: Analysts' Average Target at $36.50 with 18.78% Upside

JMP Securities has raised the price target for Hippo Holdings (HIPO) to $40, a 14.29% increase, maintaining a "Market Outperform" rating. The company provides home insurance and has three reportable segments, with the majority of revenue coming from the Insurance-as-a-Service segment. Based on analyst estimates, the average target price is $36.50, with a high estimate of $41.00 and a low estimate of $26.00, implying an 18.78% upside from the current price.

JMP Securities has raised its price target for Hippo Holdings (NYSE:HIPO) to $40, representing a 14.29% increase from its previous target of $35. The firm maintains a "Market Outperform" rating on the stock, reflecting its positive outlook on the company's financial performance and growth prospects [1].

Hippo Holdings provides property and casualty insurance products to individuals and business customers primarily in the United States. The company operates through three segments: Services, Insurance-as-a-Service, and Hippo Home Insurance Program. The majority of the company's revenue comes from the Insurance-as-a-Service segment [2].

The insurance technology company reported strong second-quarter 2025 results, with earnings per share (EPS) of $0.65, exceeding analysts' expectations. Revenue reached $117.3 million, growing 31% year-over-year and surpassing analyst projections [2]. Hippo Holdings achieved a net income of $1 million, marking its first positive net income since going public [3].

Analysts' estimates for Hippo Holdings' stock price range from $26 to $41, with an average target price of $36.50. This implies an 18.78% upside from the current price, highlighting the potential for significant appreciation in the stock's value [1].

The company's improved financial performance can be attributed to several factors, including higher risk retention in hybrid fronting programs, a shift away from quota-share reinsurance, and a recent partnership with The Baldwin Group. This partnership is expected to drive premium growth and diversification by tripling access to new home closings [2].

Hippo Holdings' latest earnings report underscores its commitment to enhancing shareholder value through strategic initiatives and operational excellence. The company's strong quarterly performance and positive financial health score have drawn attention from investors, reflecting optimism about its future prospects [2].

References:
[1] https://www.marketbeat.com/instant-alerts/jmp-securities-issues-positive-forecast-for-hippo-nysehipo-stock-price-2025-08-07/
[2] https://ca.investing.com/news/analyst-ratings/hippo-stock-price-target-raised-to-40-from-35-at-jmp-on-profitability-93CH-4142221
[3] https://www.ainvest.com/news/hippo-holdings-q2-2025-earnings-exceed-estimates-revenue-surpasses-projections-2508/