Piper Sandler says its "main concern" is that TRUP is facing a dual-threat macro environment between a contraction in the U.S. puppy vet visit funnel, combined with an aging COVID cohort that will "ultimately have very expensive care."
TRUP reported a rise in Q2 revenue, slightly ahead of analysts' estimate, earlier this month.
Up to the last close, shares were down 14.8% year to date.
Piper Sandler cuts rating and price target
U.S. pet insurer Trupanion TRUP.O shares slip 1.7% to $31.29 in premarket trading.
Piper Sandler lowers its rating on TRUP to "neutral" from "overweight" and reduces its price target to $32 from $45.
The brokerage says the company is "entering a period where growth will be harder to come by, and margin expansion will be limited by the need to balance retention against pricing."
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