Two 59%+ winners, four above 25% in Aug – How this AI model keeps picking winners
Tuesday - Needham analysts have increased their price target on EverQuote (NASDAQ:EVER) shares to $38 from the previous $30, maintaining a Buy rating on the stock. This adjustment follows EverQuote’s fourth-quarter results, which exceeded expectations. The company reported a significant recovery in auto carrier marketing spend, which contributed to its strong performance. According to InvestingPro data, EverQuote has demonstrated impressive revenue growth of 27.43% over the last twelve months, with a remarkable gross profit margin of 95%.
The analysts highlighted EverQuote’s first-quarter guidance, which suggests an impressive year-over-year revenue growth of 73% and healthy profitability. They noted that as auto carriers intensify their customer acquisition efforts after a period of low demand, there could be potential for earnings to surpass both Needham’s and other analysts’ estimates for the fiscal year 2025. InvestingPro analysis shows the company maintains strong financial health with a GOOD overall score, and currently appears undervalued according to InvestingPro’s Fair Value model. Subscribers can access 12 additional ProTips and detailed valuation metrics on the platform.
Moreover, the removal of a potential regulatory challenge has also played a role in the positive outlook for EverQuote. The proposed FCC (BME:FCC) TCPA regulation, which had been a concern for investors, is no longer expected to be implemented under the new administration. This development has removed a significant obstacle for the company, contributing to the optimistic assessment.
The after-hours trading showed EverQuote shares surging by over 25%, reflecting the market’s response to the upbeat financial results and future prospects. Needham’s analysts believe that given the current estimated EV/EBITDA multiple of approximately 8.5 times their fiscal year 2026 estimate, the risk-reward balance for EverQuote stock is favorable.
In conclusion, the raised price target and sustained Buy rating from Needham are based on EverQuote’s robust quarterly performance, encouraging guidance, and the alleviation of regulatory concerns, which together support a positive outlook for the company’s stock value.
In other recent news, EverQuote Inc. reported impressive financial results for the fourth quarter of 2024. The company exceeded expectations with an earnings per share (EPS) of $0.33, surpassing the forecasted $0.19. Revenue for the quarter reached $147.5 million, significantly higher than the anticipated $133.77 million, marking a 165% increase year-over-year. EverQuote also reported a record net income of $12.3 million for the quarter. For the full year 2024, the company’s revenue totaled $500 million, representing a 74% increase from the previous year.
EverQuote ended the year with $102.1 million in cash and no debt, reflecting strong financial health. Looking ahead, the company projects first-quarter 2025 revenue between $155 million and $160 million, indicating a 73% growth compared to the same period last year. Analysts have taken note of EverQuote’s robust performance, with firms like Canaccord Genuity and JPMorgan engaging in discussions about the company’s strategic direction and market positioning. These recent developments highlight EverQuote’s strong financial standing and optimistic future outlook.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.