Hagerty initiated with a Neutral at JPMorgan

JPMorgan analyst Pablo Singzon initiated coverage of Hagerty with a Neutral rating and $9 price target. The firm expects stable loss ratios and consistent premium growth from Hagerty’s primary business, classic car insurance. Meanwhile, the company’s non-insurance businesses, which are less than 10% of revenues, offer significant long-term growth potential and should see margin improvement as they scale from a start-up phase, the analyst tells investors in a research note. However, the firm thinks these positive attributes are more than adequately reflected in Hagerty’s valuation.