JPMorgan says that Porch Group’s business to-business strategy is what sets it apart from other software companies in the insurance and home services industry. Cory Carpenter began coverage of Porch Group by giving it an overweight rating. Carpenter stated that Porch Group is a home-concierge company and has made a difference. Carpenter stated that while most InsurTech and home service platforms are DTC-based, PRCH’s unique B2B strategy is what sets it apart. PRCH offers software/services for 25k+ home service companies. This includes high-margin subscription revenues, early mover access at low CAC and proprietary data. JPMorgan has also set an $8 price target for the company, which represents nearly 80% of Friday’s closing prices. According to the analyst, Porch Group will expand its market share by adding more services and partly through acquisitions. Home services and insurance products are offered by the company, which currently serves a total market size of $320 Billion in the U.S. According to the note, 65% of all home purchase transactions are made through this platform. Porch could be profitable by 2023 and have a 30% chance of growing its revenue. His comments included, “We believe PRCH’s B2B strategy differentiates and positions PRCH well to sustain 30%+ growth even in tougher real-estate markets with profit turning positively in 2H23.” Premarket trade on Monday saw Porch Group shares remain flat. —CNBC’s Michael Bloom contributed to this report.
An area of tightly-packed homes is viewed at Boulder City Parkway, Henderson, Nevada on January 11, 2022.
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Porch GroupJPMorgan believes that the unique business-tobusiness strategy at’s software company sets it apart from the rest in the home service and insurance industries.
