Michael Zaremski, an analyst from BMO Capital, has initiated a new Hold rating on Hagerty Inc Class A (HGTY).
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Michael Zaremski’s rating is based on a combination of factors that highlight both the potential and constraints of Hagerty Inc Class A. The company stands out in the auto insurance industry by focusing on classic cars, which allows it to build strong customer relationships and differentiate itself from more commoditized insurers. Hagerty is poised for significant premium growth due to its expanded partnership with State Farm, improved economic structure with Markel, and the introduction of new products.
Despite these positive prospects, Zaremski’s Hold rating reflects some caution. The valuation of Hagerty is currently constrained by its recent strong market performance and a potential accounting-related challenge anticipated in 2026. This accounting transition could create temporary revenue and EBITDA headwinds, which tempers near-term enthusiasm. However, the long-term outlook remains positive, with expectations of robust revenue growth driven by strategic partnerships and market expansion.