Keefe Bruyette & Woods Lifts Porch Group (PRCH) Price Target Impressed by New Capital Structure

Porch Group, Inc. (NASDAQ:PRCH) is one of the must-buy small-cap stocks to invest in. On August 13, Keefe Bruyette & Woods raised the stock’s price target to $16 from $7 while reiterating a ‘Market perform’ rating.

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A close-up of a hand tapping away at a keyboard, using the company’s software to carry out a transaction.

The research firm hiked the stock’s price target, impressed by the company’s new capital-light operating structure and resulting benefits. Management has reiterated the company’s growth prospects, citing a solid reciprocal surplus and expansion of agency distribution channels.

The remarks come as the company delivered solid second-quarter results with earnings per share of $0.03, against an expected loss of $0.08 per share.  Revenue in the quarter reached $119.2 million, exceeding expectations of $99.39 million. Keefe Bruyette & Woods expects Porch Group to achieve an EBITDA of $68 million, an improvement from its initial guidance of $67 million, following the positive second-quarter results.

Porch Group, Inc. (NASDAQ:PRCH) is a software application company focused on the home industry. It provides software and services to various home service sectors, including title & closing, mortgage, and insurance, while also connecting homeowners with service professionals. It aims to simplify the home-buying and maintenance process through its software and network.

While we acknowledge the potential of PRCH to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PRCH and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.