UPDATE: Goldman Sachs Starts Selectquote (SLQT) at Buy
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Goldman Sachs analyst Yaron Kinar initiates coverage on Selectquote (NYSE: SLQT) with a Buy rating and a price target of $36.00.
The analyst comments "We are bullish on the direct-to-consumer (D2C) Medicare brokerage space given (1) the strong secular/structural growth in the Medicare Advantage (MA) market, where we expect the total addressable market (TAM) to grow at a 6% CAGR through 2040, to $40bn, with baseline expectations for a 62% MA penetration rate in 2040 (compared to about 39% today) and (2) the use of technology and data to optimize lead generation and source customers that should allow D2C carriers to continue to take market share from field agents, in our view. We refer to our GOCO initiation for a deeper discussion of the D2C Medicare Broker industry and market opportunity."
Shares of Selectquote closed at $26.73 yesterday.
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