Canaccord Genuity analyst Maria Ripps has maintained their bullish stance on MAX stock, giving a Buy rating yesterday.
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Maria Ripps’s rating is based on several key factors influencing MediaAlpha’s performance and outlook. The company reported second-quarter results that aligned with expectations, with transaction value and revenue meeting guidance, although adjusted EBITDA was slightly below the anticipated range. The Property & Casualty (P&C) vertical showed strong growth, driven by robust carrier profitability that helped counteract challenges from automotive tariffs and supported increased marketing investments by carriers.
Additionally, MediaAlpha’s resolution with the FTC, which involved a $45 million settlement and enhanced compliance measures, removed a significant regulatory overhang. Despite anticipated short-term impacts on the under-65 Health segment, the company remains committed to this vertical, seeing potential growth opportunities. The outlook for the third quarter is positive, with expected growth in transaction value and revenue, supported by healthy carrier profitability. These factors, combined with an undemanding valuation and improved investor sentiment, underpin Maria Ripps’s Buy rating for MediaAlpha.