Pet Insurer Trupanion Has Several Catalysts For 2025 As Investor Sentiment Improves: Analyst

While investor sentiment for pet insurance provider Trupanion Inc TRUP is improving due to a decline in the company's input costs, the stock has several "catalysts on the horizon," according to Piper Sandler.

The Trupanion Analyst: Analyst John Barnidge upgraded the rating for Trupanion from Neutral to Overweight, while maintaining the price target at $57.

The Trupanion Thesis: Investors now have a better understanding of the drag from Pet's Best on the company's 2025, Barnidge said in the upgrade note.

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On the other hand, Trupanion's underlying Subscription business "retains strong growth characteristics," he added.

Continued compounding of multi-year interest rate hikes have led to a faster improvement in underwriting, while higher speed of claims processing may support the "meeting of the growth demands for a growing product category," the analyst stated.

A year back, investors were concerned about "two material weaknesses – one in financial controls and the other on tech," which may be lifted by Trupanion's 2024 10-K filing showing that the company has taken remediation actions, Barnidge wrote.

The stock is currently trading at lower multiples than "many insurance brokers," he added.

TRUP Price Action: Shares of Trupanion had risen by3.72% to $48.25 at the time of publication on Thursday.

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