Analyst Mayank Tandon of Needham reiterated a Buy rating on EverQuote (EVER – Research Report), boosting the price target to $30.00.
Mayank Tandon’s rating is based on EverQuote’s impressive first-quarter results and a positive outlook that surpassed expectations. The growth in insurance carrier advertising spending was a significant driver of the company’s performance, and projections for the second quarter suggest a continuation of this trend with an anticipated year-over-year growth of approximately 52% at the midpoint. Additionally, the forecast includes roughly 8% EBITDA margins, which further supports the company’s robust financial health and the potential for sustained growth in the advertising budget from carriers.
Furthermore, management’s indication that the recovery in spending is broader than initially expected adds to the optimism around EverQuote’s prospects, despite the possibility of growth being front-loaded in the next fiscal year. Tandon’s confidence in the company’s trajectory is reflected in the reiteration of the Buy rating and an increase in the target price to $30. This adjustment is predicated on the stronger-than-anticipated growth trajectory and the belief that the estimates for FY24 and FY25 are poised for significant upward revisions, underscoring the potential for EverQuote to outperform in the market.
Tandon covers the Technology sector, focusing on stocks such as ACI Worldwide, Par Technology, and Exlservice Holdings. According to TipRanks, Tandon has an average return of 2.2% and a 43.76% success rate on recommended stocks.
In another report released today, J.P. Morgan also maintained a Buy rating on the stock with a $29.00 price target.
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EverQuote (EVER) Company Description:
EverQuote, Inc. operates as an online insurance marketplace connecting consumers with insurance providers. It offers car, home and life insurance. The firm’s data and technology platform matches and connects consumers seeking to purchase insurance with relevant options from its broad direct network of insurance providers. The company was founded by Seth N. Birnbaum, David B. Blundin, and Tomas Revesz in August 1, 2008 and is headquartered in Cambridge, MA.
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