EverQuote stock holds Buy rating with $26 target

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On Tuesday, EverQuote (NASDAQ:) maintained its Buy rating and $26.00 price target according to a Craig-Hallum analyst. The analyst’s assessment follows a virtual marketing day with EverQuote’s CFO, Joseph Sanborn, which reinforced a positive outlook for the company amidst a recovering auto insurance marketing industry.

The company has observed an improvement in spending patterns since the fourth quarter report released two weeks ago, confirming trends that Craig-Hallum has independently verified.

The analyst is optimistic about EverQuote’s revenue and profit potential, noting that the company is aiming for 5-6% EBITDA margins in the near term. This target is expected to be a stepping stone to further profit increases in subsequent quarters and years.

The growth witnessed in the Home and Renters insurance sectors, particularly the approximately 50% increase in the second half of 2023, is anticipated to contribute to the company’s performance in 2024.

The recent appreciation of EverQuote’s shares has not dampened the analyst’s positive outlook. The expectation is that as additional carriers raise their marketing budgets, EverQuote will experience prolonged growth. This expansion could potentially surpass previous peak spending levels, which might lead to a nearly 50% increase in the company’s current fundamentals.

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