Barclays Starts Ethos Technologies (LIFE) at Overweight

Barclays analyst Ross Sandler initiates coverage on Ethos Technologies (NASDAQ: LIFE) with a Overweight rating and a price target of $20.00.

The analyst comments: "We initiate coverage of LIFE at OW and a $20 price target. At roughly 6x EBITDA, LIFE trades at a sharp discount to the insurance broker peers, and closer to lead-gen peers. It offers investors the opportunity for both estimate revision upwards and multiple expansion, to the degree that the buyside starts to value LIFE like its brokerage peers. Stated differently, investors can buy LIFE shares at the same multiple as peer-trough lead-gen players, and see upside if the narrative shifts back toward Goosehead and other brokers being the peer set. Four Things We Like: Ethos 1) operates in a large TAM, nearly 10m people purchase life insurance each year in the US, 2) has built a deep tech stack, but remains “asset light” from an insurance perspective, not taking on balance sheet risk, 3) has a solid track record of launching new products that expand into new revenue areas, and 4) is comfortably operating above the ‘Rule of 40%’ territory."

For an analyst ratings summary and ratings history on Ethos Technologies click here. For more ratings news on Ethos Technologies click here.

Shares of Ethos Technologies closed at $10.80 yesterday.

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