Loop Capital upgrades Porch Group to Buy, sees 2025 as ‘year of execution’

Loop Capital analyst Timothy Greaves upgraded Porch Group (PRCH) to Buy from Hold with a $6 price target The company fell short on total revenue, but it exceeded expectations in terms of profitability, and looking ahead to 2025, the management believes they can maintain an 80% gross margin while improving the EBITDA margin by over 1000 bps, the analyst tells investors in a research note. Loop adds that it sees 2025 as a year of execution following the restructuring of the insurance business to a Reciprocal Exchange insurance model, which should help reduce overall financial risk and enhance margins.