Hippo price target raised to $35 from $25 at JMP Securities

JMP Securities raised the firm’s price target on Hippo (HIPO) to $35 from $25 and keeps an Outperform rating on the shares. Hippo’s Q3 results showed a business that remains on track to turn EBITDA positive next quarter as the result of substantial improvements in underlying loss ratio and ongoing expense control, the analyst tells investors in a research note. Hippo is now a business more narrowly focused on the new construction home market, an area in which it has key competitive advantages and strong and growing relationships with builders, as well as two sizable fee income streams in Spinnaker and its agency, the firm says.