B. Riley Securities Upgrades Hippo Holdings to Buy, Raises PT to $41.

B. Riley Securities Upgrades Hippo Holdings to Buy, Raises PT to $41.

B. Riley Securities has upgraded Hippo Holdings Inc. (NYSE: HIPO) to a "Buy" rating and raised its price target to $41 from $35, according to a recent announcement. The upgrade follows Hippo's strong second-quarter 2025 results, which saw the company achieve its first positive net income from operating activities, posting a net income of $1 million [2].

The insurance technology company's revenue grew by 31% year-over-year, reaching $117 million, and its gross written premiums increased by 16% to $299 million [2]. Hippo's consolidated net loss ratio improved significantly to 47%, a 46 percentage point year-over-year improvement [1]. These results reflect the company's strategic initiatives and operational efficiencies, which have driven its improved financial performance.

The upgrade from B. Riley Securities comes amidst growing investor optimism about Hippo's strategic initiatives and its ability to navigate the challenges of the homeowners insurance market. The company's recent 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 [1].

Despite the positive news, Hippo faces several challenges, including weather-related risks, increased competition, macroeconomic pressures, and regulatory changes in the insurance industry [2]. However, the company's focus on innovation and diversification positions it well for future growth.

References:
[1] https://ca.investing.com/news/analyst-ratings/hippo-stock-price-target-raised-to-40-from-35-at-jmp-on-profitability-93CH-4142221
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-hippo-holdings-sees-stock-rise-amid-first-positive-net-income-in-q2-2025-93CH-4173512