William Blair analyst Adam Klauber has maintained their bullish stance on MAX stock, giving a Buy rating on February 19.
Adam Klauber has given his Buy rating due to a combination of factors including MediaAlpha’s impressive transaction and revenue growth that exceeded expectations. The company’s transaction value surged by 202% to $499 million, surpassing the projected $489 million, while revenue increased by 157% to $301 million, outpacing the anticipated $285 million. This growth was largely driven by a significant increase in P&C transaction value and a slightly higher-than-expected open platform mix.
Despite the first-quarter guidance being below expectations, with revenue projected at $235 million, Klauber remains optimistic about MediaAlpha’s long-term potential. He anticipates a 20% revenue growth in 2025 and believes the company can sustain double-digit growth over the long term. Although there are short-term pressures due to the ongoing FTC matter and softness in the under-65 health business, Klauber sees MediaAlpha’s strong position in P&C insurance advertising as a valuable asset for future growth.
According to TipRanks, Klauber is a 4-star analyst with an average return of 12.0% and a 59.77% success rate.