Last but not least we have Trupanion, a pet insurance company for cats and dogs. What sets Trupanion apart is that its insurance policies come with no payout limits. “Off the leash” is how five-star RBC Capital analyst Mark Mahaney (Track Record & Ratings) described the company following its stellar Q3 earnings report.
He reiterated his Trupanion buy rating on November 9 with a $44 price target. Given that the stock is currently trading at just $25, his target translates into upside potential of over 70 percent.
“We view TRUP’s top-line results as encouraging, with EBITDA and pet growth continuing to outperform expectations,” Mahaney wrote in his investor report. And for investors, TRUP offers both growth and reliability: “We continue to believe TRUP has the characteristics of a high-growth, subscription-based, ‘Net company and benefits from a highly recurring model, which adds predictability.”
He believes Trupanion is facing a massive total addressable market of more than $3 billion to $5 billion, and calls the shares ‘an attractive investment’ so long as there’s no significant, unexpected slowdown in pet policy growth.
Overall, this ‘strong buy’ stock has a $40 average top analyst price target (57 percent upside potential).
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