Analyst Patrick Sholl from Barrington maintained a Buy rating on Quinstreet (QNST – Research Report) and keeping the price target at $29.00.
Patrick Sholl has given his Buy rating due to a combination of factors that highlight QuinStreet’s strong growth potential. The company’s financial services vertical, particularly in insurance, has shown impressive revenue growth, driven by a recovery in insurance ad spending. This trend is expected to continue as more carriers shift their budgets to digital channels, providing long-term growth opportunities for QuinStreet. The diversification of media channels, including higher-margin owned and operated channels, further supports this positive outlook.
Additionally, QuinStreet’s other financial service verticals and home services segment show potential for growth despite some economic challenges. The company targets Prime credit customers, which could help mitigate risks associated with economic uncertainties. Furthermore, QuinStreet’s financial results have been strong, with revenues slightly exceeding estimates and reaffirmed guidance for fiscal 2025. The combination of these factors, along with broader trends in digital advertising, supports the Buy rating and the $29 price target set by Patrick Sholl.