Compass Point Starts Patriot National (PN) at Buy

Compass Point initiates coverage on Patriot National (NYSE: PN) with a Buy rating and a price target of $20.00.

Analyst Ken Billingsley commented, "Patriot National is an insurance services firm with strong topline growth potential trading at a discount to peers. The recently IPO'd company has exceeded its expectations for acquisitions, independent agent expansion and carrier customer growth following its IPO in January of 2015. This should lay the ground work for peer leading topline revenue growth and improving margins. Given the company's earnings structure, we expect organic growth to surprise on a quarterly basis as the company continues to add products and services to its independent agent distribution channel. In addition, the company has expanded its relationships with insurance carriers and we believe Patriot National will continue to expand services offered to its unbundled customers which will likely push revenues higher.

Following the company's recent canceled follow-on offering, investors have taken a step back. This has produced an opportunity for investors to get in at a discount to peers as the company is likely to meet or exceed guidance over the next few quarters. We don't expect Patriot National to come back to the market without identifiable acquisition targets. However, when a larger acquisition presents itself we believe the market will be more receptive following a few quarters of consistent execution."

For an analyst ratings summary and ratings history on Patriot National click here. For more ratings news on Patriot National click here.

Shares of Patriot National closed at $13.87 yesterday.

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