Maria Ripps, an analyst from Canaccord Genuity, maintained the Buy rating on MediaAlpha. The associated price target remains the same with $15.00.
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Maria Ripps’s rating is based on MediaAlpha’s strong performance in the Property & Casualty (P&C) segment, which has shown significant growth and continues to drive the company’s momentum. The P&C transaction value increased substantially, supported by robust carrier spending and a shift towards private marketplace transactions. This positive trend is expected to continue as smaller carriers increase their spending, potentially broadening demand in the coming years.
Despite challenges in the Health segment due to compliance changes and reduced spending, MediaAlpha’s overall financial health remains strong. The company’s valuation appears attractive, with a low multiple of future revenue and adjusted EBITDA, suggesting a favorable risk-reward profile for investors. Additionally, the company’s share repurchase program and encouraging discussions about future budgets further support the Buy rating, indicating confidence in MediaAlpha’s long-term growth prospects.
MAX’s price has also changed moderately for the past six months – from $8.750 to $11.120, which is a 27.09% increase.