Porch Group rallies after attracting second bull rating of the week
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Porch Group (NASDAQ:PRCH) attracted another bull on Wall Street with Compass Point started off coverage with a Buy rating.
Analyst Jason Weaver and team mirrored some of the points made by JPMorgan earlier in the week on PRCH's tech-enabled approach and its targeting of an under-penetrated and fragmented industry.
"The company’s strategy of offering free ERP/CRM software to home inspectors and other service providers that share their customer data, offers other network members enhanced ability to identify high-potential clients weeks earlier than their competitors with more traditional approaches--which in our view results in a high LTV/CAC ratio for PRCH."
Compass Point also noted that 2/3 of the company’s revenue base consists of recurring SaaS subscription fees and Homeowners’ Insurance/Warranty premium revenue to give it much lower cyclical exposure than the residential real estate business overall.
Compass Point assigned a price target of $11.50 to PRCH, which is even higher than JPMorgan's price target of $8 and implies shares could more than double.
Porch Group (PRCH) rose 8.05% in premarket trading to $4.16.