Benzinga | Dec 29, 2020 02:02PM EST

Porch Group Primed To Take More Consumer Wallet Share, Says Bullish Benchmark

Porch Group Inc (NASDAQ:PRCH) seems poised to capitalize on the rapidly growing home services software market, according to Benchmark.

The Porch Analyst: Daniel Kurnos initiated coverage of Porch with a Buy rating and $24 price target.

The Porch Thesis: Porch.com has a "software plus transaction revenue model in the home services space," which makes it a B2B2C -- business to business to consumer -- company, Kurnos said in a Tuesday initiation note.

Porch owns software tools that are used by more than 10,000 companies, the analyst said.

He named the following reasons for being bullish on Porch.com:

* Home service and sale related companies are expected to witness favorable macroenvironment conditions next summer

* The user base is "relatively sticky"

* Porch has already achieved a Net Promoter Score of 73

* The company aims to deploy a consumer app next year and may launch DTC services in the future

* Its hybrid model should increase "consumer wallet share over time, driving significant scale benefits"

* Porch targets several massive markets

* The valuation looks "relatively inexpensive"

PRCH Price Action: Shares of Porch Group were down 1.5% at $14.49 at last check Tuesday.