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Goldman Sachs has started covering Porch Group with a Buy rating and set a price target of 21 dollars. The firm believes Porch’s mix of insurance and software tools has plenty of room to grow both revenue and profits.
Porch is not just an insurance company. It offers homeowners insurance, software, and services that connect to the homebuying journey. This includes things like inspections, moving help, and managing claims.
Goldman pointed out that Porch has a unique advantage because it can combine its own inspection data with past claims and other outside information. This allows it to price policies more accurately, especially for safer properties. That means better profitability.
The company has already shown progress. Its insurance losses have dropped sharply in the past two years. Insurance operations are now making margins of more than 30 percent. Its reciprocal insurance arm has earned about 50 million dollars in profit over the past year.
Goldman does not expect Porch to compete with the biggest names in insurance. But it sees strong potential in the company’s ability to target specific regions and risk types where it has an edge. Porch’s new exchange model also gives it more flexibility with capital and helps it grow its insurance distribution.
The firm admitted that Porch went through a rough stretch over the last four to five years, much of it due to factors outside management’s control. But it now sees Porch set up for solid and profitable expansion.
Shares have been on a huge run this year, up 238 percent compared with only a 10 percent gain in the S&P 500. Even after that rally, Goldman believes the stock still has room to climb, noting it trades at 19 times expected 2026 earnings on an enterprise value to EBITDA basis.