EverQuote (EVER -2.48%) was a solid stock in the insurance sector over the past five trading days. Across the week, the online insurance company’s share price rose in excess of 6%, according to data compiled by S&P Global Market Intelligence, a rate that well outpaced the slumping S&P 500 index.
A pair of generous price target increases from analysts was a key reason for this performance. On Wednesday, Needham’s Mayank Tandon more than doubled his estimation of the worth of EverQuote’s stock. He now feels its proper level is $21 per share; previously, his price target was $8. Almost needless to say, Tandon is maintaining a buy recommendation on the stock.
His move came after EverQuote made a presentation at the latest annual Needham Growth Conference. Tandon said pronouncements from company management were “upbeat.” The analyst was particularly impressed by the fact that macroeconomic headwinds currently buffeting the automobile market seem to be dying down.
In a nearly similar move the following day, Oppenheimer‘s Jed Kelly increased his price target on EverQuote to $22 from $8. Like Tandon, Kelly sees the automobile market improving and feels that the high prices for used cars and inflationary pressures damaging the business of insurers are less of a factor these days. Kelly is also maintaining his company’s equivalent of a buy recommendation.
Insurance companies, particularly those that focus on the vehicles we all love so much, certainly aren’t out of the woods yet. Inflation is still a concern, although it has come down, and it will continue to affect consumer behavior and, consequently, dampen the business of underwriters.