Trupanion price target raised to $56 from $47 at BofA

BofA analyst Joshua Shanker raised the firm’s price target on Trupanion to $56 from $47 and keeps a Buy rating on the shares. Following Trupanion’s investor day event on September 18, the firm is “more convinced” that the company is poised to enter a “period of over-earning” following two-year compounded rate increases in the 15%-20% range, the analyst tells investors. The firm expects continued price increases are likely to overshoot with Trupanion’s currently high estimates of forward-looking medical loss inflation of around 15% overestimating the next year’s trend, the analyst added. BofA also expects that management guidance is likely to be conservative near-term and that the firm’s forecast may exceed an initial 2025 outlook from the company with Q4 results.