Zhitong Financial APP learned that Bank of America covered WDH.US for the first time with a "buy" rating, with a target price of $11.50. Michael Li, an analyst at the bank, expects the company to gain market share from fast-growing markets and traditional offline distributors / insurers.

Bank of America expects droplet sales to grow at a compound annual growth rate of 38% (CAGR) between 2021 and 2023, mainly driven by first-year premium (FYP) growth in 31%CAGR and an increase in conversion rate (take rate) (expected to be 23% in 2023 and 19% in 2020).

Li pointed out that Shuidi is the second largest online insurance distribution platform in China, and the increase of premium, the improvement of conversion rate and cost control are the three key drivers of Shuidi's profitability and sustainable development.