Ethos Technologies (LIFE) PT Raised to $38 at BofA Securities

BofA Securities analyst Michael McGovern raised the price target on Ethos Technologies (NASDAQ: LIFE) to $38.00 (from $32.00) while maintaining a Buy rating.

The analyst comments "A bear thesis for Ethos has been a lack of significant FCF generation, given the context of booking 100% of policy revenue upfront while only collecting ~80% of cash in Year 1 (20% long-tail), which leads to a Commission Receivable on the B/S (reaching $293mn in 2Q’26). So far in 1H’26, FCF Conversion (as % of EBITDA) has jumped to 91%, and though that is likely above LT guidance (we model closer to 70% LT), this is a significant improvement vs. just 34% conversion for 2025A. Mgmt’s announcement for a $100mn share buyback underscores the growing durability of Ethos’ stronger-than-expected B/S and FCF position, negating a key bear thesis on earnings quality & cash conversion."

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