Goosehead Insurance price target lowered to $90 from $95 at BMO Capital

BMO Capital lowered the firm’s price target on Goosehead Insurance to $90 from $95 but keeps an Outperform rating on the shares. While the stock has fallen 39% since the company reported Q4 results two months ago, Goosehead has been making improvements to its workforce by culling unproductive employees, which has lowered the company’s revenues in the past couple quarters while expenses have remained at a relatively similar level, the analyst tells investors in a research note. The firm adds that home and auto insurers have seen their profits deteriorate over the past two years, which continues to put pressure on carriers’ appetites to write new business and slows Goosehead’s ability to start new franchises.