Porch Group Inc. (PRCH) PT Raised to $23 at Benchmark, Shares Seen as 'Substantially Undervalued'

Benchmark analyst Daniel Kurnos raised the price target on Porch Group Inc. (NASDAQ: PRCH) to $23.00 (from $22.00) while maintaining a Buy rating.

The analyst commented, "Porch Group (PRCH: Buy, PT from $22 to $23) put up another stellar print, beating 2Q26 consensus revenue and EBITDA by $9 million and $14 million respectively, and raising full-year guidance by ~$2 million more than the beat on both lines. This was accomplished on reciprocal written premium (RWP) of $140 million, exactly matching our forecast, with the key takeaway being that policy count matters as much as total RWP in the monetization equation. Arguably the biggest surprises were that both the revenue take rate and the statutory surplus increased sequentially despite some tough local weather and typical down-trending seasonality. Porch now has the strongest balance sheet they have ever had, both at the company level and at the reciprocal, setting them up with an enviable set of options regarding policy growth and incremental, self-financing M&A. While we suspect this quarter is unlikely to silence the landgrab proponents or the TAM/competition skeptics, it feels like the negative thesis took a meaningful hit as not only did Porch reiterate their $600 million organic RWP target for the year, but they did so despite a 4% y/y decline in premium per new policy environment, suggesting that writing massively margin accretive volume is not remotely close to being market constrained in any way. We imagine that folks will look back in a few years and see this quarter as yet another pivotal proof of concept moment, especially considering the macro housing backdrop and a softening insurance market. At just 12x 2027E EBITDA, we continue to believe shares of Porch are substantially undervalued, with the free cash flow yield also creeping up towards 10%, which feels crazy for a rule of 50 company."

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