William Blair analyst Adam Klauber has maintained their bullish stance on QNST stock, giving a Buy rating today.
Adam Klauber has given his Buy rating due to a combination of factors, including Quinstreet’s strong revenue growth and solid adjusted EBITDA performance. The company’s revenue increased by 60%, aligning with both the firm’s and market expectations, while the adjusted EBITDA reached $19.4 million. Although the auto insurance segment’s growth was slightly below expectations, this was counterbalanced by a stronger-than-anticipated performance in home services.
Moreover, management’s reaffirmation of fiscal 2025 guidance, despite broader-than-usual fourth-quarter guidance ranges, suggests a conservative outlook. The stability in advertising spending supports a positive revenue outlook, prompting a slight upward revision in fiscal 2025 estimates to $1.1 billion in revenue and $81 million in adjusted EBITDA. Despite anticipated growth deceleration in the latter half of calendar 2025 due to challenging insurance comparisons, the stock is seen as having significant potential to compound earnings at a double-digit rate in fiscal 2026 and beyond.
Klauber covers the Financial sector, focusing on stocks such as Baldwin Insurance Group, Skyward Specialty Insurance Group, Inc., and Ehealth. According to TipRanks, Klauber has an average return of 10.5% and a 59.43% success rate on recommended stocks.
In another report released today, B.Riley Financial also maintained a Buy rating on the stock with a $28.00 price target.