Porch Group ‘s business-to-business strategy sets the software company apart in the home services and insurance industry, according to JPMorgan. Analyst Cory Carpenter initiated coverage of Porch Group with an overweight rating, saying in a Monday note that the home concierge company has differentiated itself. “While most home services and InsurTech platforms are DTC, PRCH has a unique B2B go-to-market strategy,” Carpenter wrote. “PRCH provides software/services to 25k+ home services companies, which provides high-margin subscription revenue, early mover access at low-CAC, and proprietary data.” JPMorgan also issued an $8 price target, which implies nearly 80% upside from Friday’s closing price for the company. The analyst believes Porch Group will continue to expand its total addressable market by adding new services, partly through acquisitions. Currently, the company offers home services and insurance products addressing a $320 billion total addressable market in the U.S. The platform is used in 65% of home purchases, the note read. Those expansions could help Porch achieve profitability by 2023, and position it for more than 30% revenue growth. “We think PRCH’s B2B strategy is differentiated and positions PRCH well for sustained 30%+ growth, even in a tougher real estate market, with profit turning positive in 2H23,” he wrote. Shares of Porch Group were flat in Monday premarket trading. –CNBC’s Michael Bloom contributed to this report.
Porch Group‘s business-to-business strategy sets the software company apart in the home services and insurance industry, according to JPMorgan.