B.Riley analyst Timothy D\'Agostino assumes coverage on Hippo Holdings Inc (NYSE: HIPO) with a Buy rating and a price target of $38.00.

The analyst comments "We are resuming coverage of Hippo Holdings Inc. (HIPO) with a Buy rating and a $38 price target, implying a potential return of ~37%. Our price target is 2.25x BVPS of $16.97; we also note a potential $7/share of book value lift from a possible valuation allowance release. P/C and homeowner-focused peers, AII, ARX, HRTG, and PLMR, currently trade at a median 2.65x P/BV, relative to 1.63x for HIPO, and for 2026 and 2027, the group trades at P/E medians of 10.1x and 9.0x, versus HIPO at 15.8x and 10.7x, respectively, on our estimates. We position our call to reflect HIPO trading closer to the peer group median P/BV, with further potential upside recognized if the valuation allowance is released. Yet, we believe that as 2027 and 2028 growth comes more into focus and as HIPO sees further operating efficiencies through expense management, we could move to an above peer group P/BV multiple to reflect future growth. For now, our thesis focuses on HIPO's increased underwriting diversification mix in P/C lines; partnerships like the one with Progressive (PGR) to sell the Hippo Home Insurance Program (HHIP) product in eight states (which we believe has potential to scale to additional states) and with Westwood, where HIPO will see 3x its opportunity to write home insurance for new home builds; continued risk management through ceding at Spinnaker; and improvements to its combined ratio from expense management."

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Shares of Hippo Holdings Inc closed at $27.90 yesterday.