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Investing.com - JPMorgan has reduced its price target on EverQuote (NASDAQ:EVER) to $29.00 from $30.00 while maintaining an Overweight rating on the insurance marketplace company. According to InvestingPro data, the company maintains a "GREAT" financial health score, with analyst targets ranging from $30 to $38, suggesting potential upside from current levels.
The adjustment follows EverQuote’s second-quarter results, which aligned with guidance but ended the company’s streak of six consecutive revenue beats. Despite this, the company has demonstrated impressive growth, with revenue surging over 113% in the last twelve months. JPMorgan noted that while carrier spending remained stable and consumer shopping elevated, insurance carriers were hesitant to increase spending due to uncertainty about how tariffs might impact second-half margins.
EverQuote management reported that carrier spending increased late in the quarter and into July after gaining clarity on tariffs. The company, which maintains more cash than debt and boasts a healthy current ratio of 2.42, expects to return to a full carrier panel by year-end for the first time since the hard market began. InvestingPro subscribers can access 8 additional key insights about EverQuote’s financial position and growth prospects.
JPMorgan expressed confidence that carrier spending will increase in the second half of 2022, noting that approximately half of EverQuote’s top 25 customers have not yet returned to peak spending levels. Several states have yet to meaningfully open, and there remains potential for a year-end budget flush.
The firm reduced its 2025 revenue forecast for EverQuote by 2%, but increased its 2025 adjusted EBITDA projection by 2%, maintaining its positive outlook on the company’s prospects.
In other recent news, EverQuote Inc. reported a notable 34% increase in revenue for the second quarter, reaching $156.6 million. The company’s net income also saw a significant rise, achieving a record $14.7 million, compared to $6.4 million in the previous year. These results highlight strong financial performance and have been well-received by investors. The earnings announcement did not include any information about mergers or acquisitions. There were no analyst upgrades or downgrades reported in connection with these earnings. The company’s financial results suggest robust growth, though no specific future projections from analysts were included. These developments indicate a positive trajectory for EverQuote based on its recent financial performance.
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