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Stock impact report

Waterdrop: Secular Growth And A Vast Pool Of Prospects [Seeking Alpha]

Waterdrop Inc. American Depositary Shares (each representing the right to receive 10 Class A Ordinary Shares) (WDH) 
Company Research Source: Seeking Alpha
Secular growth is going to be a strong tailwind for the industry, with CAGR estimations ranging from 13% (traditional insurance) to 54% (insurtech). Absolute and relative valuation suggest some undervaluation. I expect 30% upside for the next 12 months, based on a residual income model. WDH's key risks include regulatory pressures, fierce insurtech competition (Alibaba, Tencent and Ping a Good Doctor), and high reliance on third-party insurance commissions. witsarut sakorn/iStock via Getty Images Thesis I'm rating Waterdrop Inc. ( WDH ) as Buy, expecting a 30% upside for the next 12 months, based on a residual income model backed by the following aspects. First, the secular growth of the industry; second, the This article was written by Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my o Show less Read more
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