Deutsche Bank initiated research coverage on Ethos Technologies (NASDAQ:LIFE) with a Buy recommendation and a price target of $23.00, according to a report released Sunday. The bank derived its target by applying a multiple of 10 times 2027 enterprise value to EBITDA, a valuation it considers reasonable when compared with asset-light insurance and internet marketplace peers.
The $23 objective implies significant upside from the stock's current trading level of $10.80, even as shares have declined by roughly 36% over the past six months. Deutsche Bank noted that it expects the risk of AI-driven disintermediation for Ethos to be limited.
In its view, Ethos is positioned to disrupt a life insurance sector the bank characterizes as digitally immature. The research note points to Ethos's technology stack and multi-channel distribution model as competitive advantages that should support share gains. The company’s platform is described as reducing friction for both consumers and agents, by eliminating traditional pain points such as medical exams and delays in commission payments.
The bank emphasized Ethos’s asset-light structure, which avoids direct underwriting risk and allows the company to capture value across distribution, underwriting and administration of life insurance. On a trailing basis the business traded at a price-to-earnings ratio of 12.02 and reported earnings per share of $0.96 over the last twelve months. An InvestingPro analysis cited in the report indicated the stock appears undervalued at current levels.
Deutsche Bank’s forecast includes policy counts growing by 31% in 2026 and by 24% in 2027. The firm also projects revenue growth of 32% in 2026 and 23% in 2027, and adjusted EBITDA expansion of 15% and 36% in those respective years. The bank stated it expects Ethos to invest aggressively to leverage its growth opportunities relative to peers.
Other recent analyst actions have also reflected a broadly favorable view of Ethos. BofA Securities began coverage with a Buy rating and set a $15.00 price target, calling attention to the company’s role as an online life insurance provider. William Blair initiated coverage with an Outperform rating, highlighting Ethos’s technology-driven platform. Goldman Sachs announced a Buy rating with a higher $33.00 target, citing Ethos’s positioning within the U.S. life insurance market.
JPMorgan assigned an Overweight rating with a $13.00 price target, reflecting expectations through December 2026. Barclays rated the company Overweight as well, placing a $20.00 target on the stock and suggesting Ethos’s valuation could increase if market participants begin to view it more like brokerage peers. Collectively, these analyst actions underscore a positive consensus among several large financial institutions.
Summary
Deutsche Bank’s initiation rates Ethos Technologies as a Buy with a $23 price target based on a 10x 2027 EV/EBITDA multiple. The bank points to Ethos’s asset-light model, technology layer and multi-channel distribution as fundamental strengths, forecasting double-digit policy, revenue and adjusted EBITDA growth in 2026 and 2027. Multiple other firms have issued Buy/Outperform/Overweight stances with price targets ranging from $13.00 to $33.00.
Key points
- Deutsche Bank values Ethos at $23 per share using 10x 2027 EV/EBITDA and assigns a Buy rating.
- Projected operational growth includes 31% and 24% policy increases and 32% and 23% revenue growth for 2026 and 2027, respectively; adjusted EBITDA is forecast to rise 15% in 2026 and 36% in 2027.
- Other major firms initiating or maintaining favorable coverage include BofA ($15 target), William Blair (Outperform), Goldman Sachs ($33 target), JPMorgan ($13 target) and Barclays ($20 target) - indicating broad institutional interest.
Risks and uncertainties
- AI disintermediation risk - while Deutsche Bank expects this risk to be limited for Ethos, it remains a potential disruption for distribution models in financial services and insurance.
- Market valuation volatility - shares have fallen about 36% over the past six months, reflecting investor sensitivity that could impact equity performance in the insurance and broader financials sector.
- Investment execution - Deutsche Bank expects Ethos to invest aggressively to capture growth advantages; the effectiveness and timing of those investments create execution risk for the company’s profitability trajectory.