Porch Group stock jumps as Goldman Sachs initiates Buy rating

Porch Group shares rose 4.6% after Goldman Sachs initiated coverage with a Buy rating, despite the stock's 1,300% surge in the past year. The rating reflects Goldman's belief in Porch Group's potential for growth in the vertical software and insurance platform market.

Porch Group shares surged 4.6% on September 2, 2025, following Goldman Sachs' initiation of coverage with a Buy rating. The investment bank has set a $21 price target, reflecting its optimism about Porch Group's potential for growth in the vertical software and insurance platform market [1].

Goldman Sachs highlighted Porch Group's data-driven insurance model, which combines proprietary inspection data with historical claims and third-party information to improve pricing accuracy and profitability. The company's insurance operations have achieved over 30% EBITDA margins and generated approximately $50 million in net income over the last 12 months [1].

Porch Group's Home Factors platform has demonstrated significant value in testing with multiple insurance carriers, delivering ROI greater than 20x across each carrier. The platform provides unique property condition insights, enabling insurers to refine pricing, mitigate losses, and strengthen retention strategies [2].

Despite the stock's 1,300% surge in the past year, shares still trade at 19 times 2026 enterprise value to EBITDA, leaving room for upside, according to Goldman Sachs. The investment bank acknowledged that Porch Group faced significant challenges in the past four to five years but is now positioned for profitable expansion [1].

References:
[1] https://www.investing.com/news/stock-market-news/goldman-sachs-starts-porch-at-buy-on-its-datadriven-insurance-model-4219632
[2] https://finance.yahoo.com/news/porch-group-home-factors-demonstrates-201500875.html