UPDATE: Gilford Securities Reiterates Buy Rating, Raises PT on Homeowners Choice on Massive Earnings Beat

In a report published Wednesday, Gilford Securities reiterated its Buy rating on Homeowners Choice

and raised its price target from $26.00 to $30.00. Gilford Securities noted, “The following components led to the massive earnings beat: Gross Premiums actually came in approximately $3MM short of our estimate. Accurately defining the timing of revenue flow from a large policy-takedown from Citizens1 can be erratic at best. Total Revenue was approximately 4% below our estimate, again because of the timing of revenues related to the policy-takedown. Loss and Loss Adjustment Expense was well below our estimate, at $15.9MM or 22% of gross premiums versus our estimate of $26MM or 35% of our Gross Premium estimate. HCI management reported a drop in both the frequency and the size of claims, as well as success in adjudicating past claims. Policy Acquisition and Underwriting costs were 33% below our estimate.” Homeowners Choice closed on Tuesday at $24.77.