2023-04-17 11:01:58 ET
- EverQuote ( NASDAQ: EVER ) continued declining for the second straight day, falling over 4% on Monday, after its largest advertiser Progressive ( PGR ) reported a higher-than-expected combined ratio , prompting a downgrade from Oppenheimer.
- Oppenheimer downgraded the online insurance marketplace to Market Perform from Outperform till it gets clarity on how higher losses at Progressive ( PGR ) will impact EverQuote's ( EVER ) results.
- "PGR's higher-than-expected loss is causing concern with investors that the insurance industry is still not underwriting auto policies at a consistent level of profitably to lean back into digital advertising," the research firm cautioned. "Therefore, we see risk to EVER's 2023 guidance, and will remain on the sidelines until there is better financial visibility."
- Oppenheimer also took down its $22 price target on EverQuote ( EVER ).
- Shares of EverQuote ( EVER ) dropped as much as 31% on Friday, ending the session 29.9% lower, and fell as much as 12% on Monday.
- Oppenheimer's stance is in line with SA Quant's Hold rating . Wall Street analysts on average rate the stock Buy .
- Last month, SA contributor Geoffrey Seiler rated EverQuote ( EVER ) Hold as a recovery in auto insurance looks priced in.
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Oppenheimer downgrades EverQuote on largest advertiser's losses, stock continues decline