MediaAlpha downgraded to Sell from Neutral at Citi

Citi analyst Daniel Grosslight downgraded MediaAlpha to Sell from Neutral with a price target of $8, up from $7. The company being able to maintain adjusted EBITDA amid a 25% reduction in transaction value through the first half of 2023 “is a testament to the resiliency and capital efficiency” of its model, the analyst tells investors in a research note. However, the firm finds it difficult to justify the stock’s current valuation amid continued property and casualty uncertainties. Additionally, Citi thinks a cutback in e-broker Medicare Advantage spend and new marketing rules will likely weigh on MediaAlpha’s near-term health segment growth.