William Blair analyst Adam Klauber has reiterated their neutral stance on GSHD stock, giving a Hold rating today.
Adam Klauber has given his Hold rating due to a combination of factors affecting GooseHead Insurance’s performance. The company reported a core revenue growth of 17%, which fell short of the anticipated 19%, primarily due to lower-than-expected commission retention and new business productivity per producer. Although the producer count increased by 12%, the adjusted EBITDA of $15.5 million was below the expected $17.7 million, indicating financial challenges.
Furthermore, new business revenue growth slowed to 8%, with product availability and a difficult housing market posing ongoing challenges. While pricing is stabilizing, it continues to impact client retention negatively. Despite expectations for improvement in product availability and retention by the year’s second half, the limited potential for significant short-term gains and the stock’s high trading multiple compared to peers led to the Hold rating. The shares are trading at a premium, with a 43 times 2026 EV/EBITDA, compared to peers in the 20- to 30-times range, supporting the decision to maintain a Market Perform rating.
In another report released today, Truist Financial also maintained a Hold rating on the stock with a $90.00 price target.