Maria Ripps, an analyst from Canaccord Genuity, maintained the Buy rating on MediaAlpha (MAX – Research Report). The associated price target is $15.00.
Maria Ripps’s rating is based on MediaAlpha’s impressive Q1 performance, where the company exceeded expectations in transaction value, revenue, and adjusted EBITDA. The auto recovery has played a significant role, with more carriers engaging in customer acquisition, contributing to the strong results. Despite potential tariff impacts, the management anticipates these to be moderate, with cost increases expected to remain in the low-to-mid single-digit range.
Additionally, MediaAlpha’s strategic adjustments in the Health vertical, particularly its focus on Medicare Advantage, align with evolving industry standards and regulations. The company’s robust Q2 outlook, with projected growth in transaction value and revenue, further supports the positive sentiment. The potential for meaningful multiple expansion, contingent on a favorable resolution to the FTC settlement, also adds to the optimism surrounding the stock.