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Investing.com - Needham lowered its price target on EverQuote shares (NASDAQ:EVER) to $25 from $40 while maintaining a Buy rating following the company’s fourth-quarter results.
EverQuote posted record fourth-quarter results that beat expectations, driven by 32.5% year-over-year revenue growth as insurance carriers increased spending amid favorable industry profitability. The company’s revenue reached $644.66 million over the last twelve months, though the stock currently trades at $15.32, down 43% year-to-date and well below its 52-week high of $30.03. Management introduced first-quarter guidance below consensus as carriers adopt a more disciplined spending approach to start the year following strong fourth-quarter levels.
The company reiterated its path to $1 billion in revenue within the next two to three years. Management expects EBITDA margins to expand approximately 100 basis points in fiscal 2026 with at least 20% EBITDA dollar growth. According to InvestingPro analysis, the stock appears undervalued at current levels, with analysts anticipating continued sales growth. The platform offers additional insights through its comprehensive Pro Research Report, which distills complex financial data into actionable intelligence for the company’s investment outlook.
Growth is expected to build as the year progresses. Needham noted the favorable carrier profitability backdrop and EverQuote’s expanding product suite present upside potential to estimates.
The firm maintained its Buy rating despite the reduced price target.
In other recent news, EverQuote reported its fourth-quarter 2025 earnings, significantly surpassing expectations with an earnings per share (EPS) of $1.54, compared to the forecasted $0.36. The company’s revenue also exceeded expectations, reaching $195.3 million against a forecast of $176.82 million. This remarkable performance led to a 327.78% EPS surprise and a 10.45% revenue surprise. Despite these strong results, Canaccord Genuity lowered its price target on EverQuote to $28 from $33 while maintaining a Buy rating. The firm cited the company’s below-expectations guidance for the first quarter as a reason for the adjustment. EverQuote’s top four carriers by spend remained unchanged from the third quarter, and the company achieved a 12% sequential revenue increase, setting a fourth-quarter record. These developments reflect the latest updates for investors following EverQuote’s financial performance and analyst assessments.
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