TD downgrades Goosehead Insurance on valuation, execution risks

TD Cowen downgraded Goosehead Insurance to Hold from Buy with a price target of $94, down from $98. The analyst cites valuation for the downgrade with the shares up more than 50% from the June low. While Goosehead’s first half of 2024 performance has been solid, with core revenues up 17% year-over-year and total revenues up 12%, much of this appears priced into the stock, the analyst tells investors in a research note. The firm says that while the company’s efforts to grow corporate and franchise agent count and productivity appear effective, execution risks remain that could limit further upside.