Health Insurance Innovations Gets a Buy Rating from Canaccord Genuity

By Carrie Williams

Canaccord Genuity analyst Richard Close assigned a Buy rating to Health Insurance Innovations (NASDAQ: HIIQ) yesterday and set a price target of $39. The company’s shares opened today at $24.35.

Close wrote:

“We forecast supplemental policy growth of 15.9% which compares to 41.5% last year in 4Q’16, and 31.0% in the most recent quarter 3Q’17. We forecast IFP policy growth of 35.4% which compares to 58.1% last year in 4Q’16, and 45.6% in the most recent quarter 3Q’17. We also have a conservative estimate for gross margin (risk premium as % of premium equivalent). Based on these drivers, we think our revenue and adj-EBITDA estimates of $57.9M (+12.5% y/y) and $8.3M (-6.7% y/y) likely set the company up for another beat. If HIIQ posted similar policy growth as 3Q’17, implied 4Q’17 revenue and adj-EBITDA would be $67.6M and $9.6M, respectively.”

According to TipRanks.com, Close is a 3-star analyst with an average return of 2.7% and a 50.2% success rate. Close covers the Services sector, focusing on stocks such as Patterson Companies Inc, Team Health Holdings, and Envision Healthcare.

Currently, the analyst consensus on Health Insurance Innovations is Strong Buy and the average price target is $38, representing a 56.1% upside.

In a report issued on November 2, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $38 price target.

The company has a one-year high of $37.38 and a one-year low of $8.30. Currently, Health Insurance Innovations has an average volume of 1.22M.

Based on the recent corporate insider activity of 62 insiders, corporate insider sentiment is neutral on the stock.

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Health Insurance Innovations, Inc. is a developer, distributor and virtual administrator of affordable individual and family health insurance plans and supplemental products. The company sells individual and family insurance plans that include short-term medical insurance plans and hospital indemnity plans.