SLQT - Goldman rates SelectQuote new Buy on Medicare growth outlook

Goldman Sachs analyst Yaron Kinar initiates coverage of SelectQuote (SLQT) with a Buy rating given the opportunity it has as the second-largest direct-to-consumer Medicare broker, an attractive insurance market benefiting from secular and structural growth.Also sees SLQT model best positioned to scale profitability, driven by both its "best-in-class" agents and its return on investment-focused growth mindset.Sees direct-to-consumer Medicare total addressable market growth of 6% CAGR through 2040 to $40B, with baseline expectations for a 62% Medicare Advantage penetration rate in 2040 vs. 39% today.Expects direct-to-consumer carriers to continue to take market share from field agents through use of technology and data.

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Goldman rates SelectQuote new Buy on Medicare growth outlook