Trupanion upgraded to Buy from Neutral at BofA

BofA analyst Joshua Shanker upgraded Trupanion to Buy from Neutral with a price target of $49, up from $35. Insurance is a cyclical industry and the firm believes that a period of under-earning will quickly transition to over-earning over the next 18 months, the analyst tells investors. Shares have rallied 9% over the past four trading days as highly shorted stocks with large retail trading volumes have surged on short covering, notes the firm, which notes its discounted cash flow model has “increased materially” based on what it sees as a return to normalized profitability.