Need To Know: Analysts Are Much More Bullish On EverQuote, Inc. (NASDAQ:EVER)
EverQuote, Inc. (NASDAQ:EVER) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.
Following the upgrade, the current consensus from EverQuote's eight analysts is for revenues of US$319m in 2024 which - if met - would reflect a notable 11% increase on its sales over the past 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 71% to US$0.44. However, before this estimates update, the consensus had been expecting revenues of US$269m and US$0.80 per share in losses. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.
Check out our latest analysis for EverQuote
The consensus price target rose 60% to US$24.33, with the analysts encouraged by the higher revenue and lower forecast losses for this year.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 11% growth on an annualised basis. That is in line with its 13% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 10.0% per year. So although EverQuote is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.
The Bottom Line
The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting EverQuote is moving incrementally towards profitability. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, EverQuote could be worth investigating further.
That's a pretty serious upgrade, but shareholders might be even more pleased to know that forecasts expect EverQuote to be able to reach break-even within the next few years. You can learn more about these forecasts, for free on our platform here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
