William Blair analyst Adam Klauber has maintained their bullish stance on HCI stock, giving a Buy rating today.
Adam Klauber has given his Buy rating due to a combination of factors including HCI Group’s strong growth prospects and operational efficiencies. The company’s in-force premium increased by 22% in 2024, driven by successful take-out policies and high renewal rates of previous acquisitions. This growth trajectory is expected to continue, with premiums anticipated to compound in the high-teens through 2025, potentially boosted by further take-outs and the adoption of Exzeo, HCI’s new operating unit.
Furthermore, the performance of Citizens policies has led to significant margin improvements, which are projected to persist into 2025. The combined ratio is expected to outperform historical levels, estimated to be in the low-80s range. Despite these positive indicators, the stock is currently trading at a relatively low multiple of 8 times the 2025 EPS estimate, suggesting that the market may not fully appreciate HCI’s growth potential and operational strengths.
According to TipRanks, Klauber is a 4-star analyst with an average return of 11.9% and a 58.89% success rate. Klauber covers the Financial sector, focusing on stocks such as Skyward Specialty Insurance Group, Inc., Ehealth, and HCI Group.
In another report released today, JMP Securities also reiterated a Buy rating on the stock with a $165.00 price target.