William Blair analyst Adam Klauber has reiterated their bullish stance on QNST stock, giving a Buy rating on November 4.
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Adam Klauber has given his Buy rating due to a combination of factors that highlight Quinstreet’s promising financial outlook. The company’s fiscal first-quarter performance showed adjusted EBITDA and EPS aligning with expectations, while revenue saw a modest increase. Notably, the auto insurance segment experienced significant sequential growth, and home services maintained a strong year-over-year increase.
Furthermore, Quinstreet’s guidance for the second quarter aligns with market consensus, projecting a substantial acceleration in revenue growth and improved margins in the latter half of the fiscal year. The company’s strategic initiatives, such as increased insurance advertising spend and the development of high-margin products, are expected to drive this growth. Additionally, a new $40 million stock repurchase authorization underscores Quinstreet’s robust cash flow and solid balance sheet, enhancing its appeal to investors.
According to TipRanks, Klauber is a 2-star analyst with an average return of 1.2% and a 41.94% success rate. Klauber covers the Financial sector, focusing on stocks such as Progressive, GCM Grosvenor, and Baldwin Insurance Group.