Hippo Holdings PT Raised to $40, JMP Securities Maintains Market Outperform

Hippo Holdings PT Raised to $40, JMP Securities Maintains Market Outperform

JMP Securities has raised its price target on Hippo Holdings Inc (NYSE:HIPO) to $40 from $35, while maintaining a Market Outperform rating. This decision follows the company's strong second-quarter results [1].

Hippo Holdings, an insurance technology company, achieved net income positivity for the first time, reporting a $1 million gain versus analyst expectations of a $17-22 million loss. The company's consolidated net loss ratio improved significantly to 47%, a 46 percentage point year-over-year improvement. Additionally, revenue grew 31% to $117 million, exceeding analyst estimates of $113-115 million. This growth was driven by higher risk retention in hybrid fronting programs and a shift away from quota-share reinsurance in HHIP [1].

Operating expenses decreased by $6 million (16%), falling from 46% of revenue in the second quarter of last year to 30% this quarter, demonstrating the company’s ability to scale efficiently. Hippo's recently announced partnership with The Baldwin Group, which included selling its homebuilder distribution network to Westwood Insurance Agency for $100 million, is expected to drive premium growth and diversification by tripling access to new home closings [1].

In other recent news, Hippo Holdings Inc. reported its second-quarter 2025 earnings, achieving its first-ever positive net income from operating activities. The company announced a net income of $1 million, alongside a significant 31% year-over-year revenue growth, reaching $117 million. These results highlight the company’s improved financial performance. The announcement has drawn attention from investors, reflecting optimism about Hippo Holdings’ strategic initiatives [1].

References:
[1] https://ca.investing.com/news/analyst-ratings/hippo-stock-price-target-raised-to-40-from-35-at-jmp-on-profitability-93CH-4142221