TRUP - Trupanion stock falls as Piper Sandler cuts to Neutral on softer 2022 guidance

Trupanion ( NASDAQ: TRUP ) shares are sliding nearly 5% in early Thursday afternoon trading as Piper Sandler analyst John Barnidge downgraded the pet insurance provider to Neutral from Overweight following its lowered full-year outlook.

While the company's Q2 earnings signaled growth in subscription pets enrolled, "a frequency dynamic earlier noted has broadened out to include a severity dynamic that emerged in late 2Q22," Barnidge wrote in a note to clients.

It sees subscription adjusted operating income growing 15%-20% in 2022, compared with the prior target of 25%, Trupanion CFO Drew Wolff mentioned during the company's Q2 conference call on Wednesday.

The company's subscription business generated $145.8M in sales during the second quarter, up from $120.4M in the year-ago period. Total enrolled pets for Q2 jumped 32% to 1,348,145 over Q2 2021.

Overall, Barnidge has lowered his price target to $69 a share from $80, still implying over 14% upside from Wednesday's close.

The Quant Rating , meanwhile, views TRUP stock as a Strong Sell, compared with the average Wall Street Analyst view of Buy.

Earlier this week, (August 3) Trupanion Non-GAAP EPS of -$0.12, revenue of $219.41M .

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