Craig-Hallum bullish on SelectQuote, initiates with a Buy

As previously reported, Craig-Hallum initiated coverage of SelectQuote with a Buy rating and $4.50 price target. The firm notes SelectQuote entered the pharmacy industry through two strategic acquisitions in 2021 and has recently added a chronic care management platform. Craig-Hallum believes expansion into these verticals positions them well in a value-based healthcare ecosystem, yet remains underappreciated, given that its leverage of the brokerage CAC creates an unfair advantage. With the recent selloff, the firm thinks now is an opportune time to buy the stock and has become increasingly confident in the durability and runway regarding the combination of healthcare services with the core insurance brokerage business.