Goosehead Insurance initiated with an Outperform at Credit Suisse

Credit Suisse analyst Andrew Kligerman initiated coverage of Goosehead Insurance with an Outperform rating and $72 price target, or 62% upside potential, based on an analysis of a price-to-earnings-to-growth ratio of a peer set of insurance brokers. A discounted cash flow analysis produces a similar value, the firm notes. Credit Suisse believes Goosehead Insurance has significant cash flow growth potential over the next few years and should reach a scale where operating leverage declines and margins continue to expand.