Craig-Hallum has reduced its price target on EverQuote (NASDAQ:EVER) to $20 from $33 while retaining a Buy recommendation on the stock. EverQuote shares are trading at $15.62, down 43% year-to-date and nearly 50% below their 52-week high of $30.03.
The firm highlighted ambiguity around insurance carriers' market strategies as its rationale for the cut, even after EverQuote reported a robust fourth-quarter performance. Over the last twelve months the company recorded 58% revenue growth, and InvestingPro analysis indicates the stock appears undervalued at prevailing prices, with the platform's Fair Value suggesting upside potential.
Analysts tracked on InvestingPro expect net income to increase this year and anticipate continued sales growth. However, both Craig-Hallum and the InvestingPro guidance point to a deceleration in growth during the first quarter of 2026 as carriers shift to a more measured approach to marketing expenditures.
Craig-Hallum projects that carrier budgets will expand as profit gains materialize through 2026, which should allow carriers to optimize profitability later in the year. The firm framed the carriers' temporary pullback in marketing as a logical tactical adjustment occurring amid broader changes to the ecosystem, including mounting concern over the potential for AI-related disruption to the status quo.
That said, Craig-Hallum flagged a range of risks tied to the carriers' strategy. The firm noted exposure to disruptions from tariffs, technology shifts, or weather events. It also reported observing selective use of rebating techniques by some carriers in specific circumstances, and warned that if such rebating were to be applied more broadly across locations it would not be well received by the performance marketing ecosystem.
Quarterly results and analyst responses
EverQuote posted a notably strong fourth quarter for 2025. The company reported earnings per share of $1.54 versus the expected $0.36, representing a 327.78% EPS surprise. Revenue came in at $195.3 million against consensus of $176.82 million, a 10.45% positive surprise.
Despite those results, EverQuote issued first-quarter guidance below consensus, attributing the softer outlook to a more disciplined spending posture by insurance carriers. That guidance prompted other brokerages to trim targets: Needham lowered its target to $25 from $40 while maintaining a Buy rating, and Canaccord Genuity cut its target to $28 from $33, also keeping a Buy stance. The cluster of target cuts underscores a mixed analyst reaction to strong reported operating performance paired with cautious near-term carrier behavior.
What this means for markets and sectors
- Insurance sector - Carrier marketing budgets and tactics are central to EverQuote's near-term revenue trajectory.
- Performance marketing and ad tech - Changes in carrier spending patterns and the use of rebating could affect the broader performance marketing ecosystem.
- Technology - Concerns about AI-driven disruption are influencing strategic decisions across the ecosystem.
Bottom line
Craig-Hallum's price-target reduction to $20 reflects uncertainty about how quickly insurance carriers will restore or expand marketing spend despite EverQuote's strong reported quarter. While InvestingPro metrics suggest the stock may be undervalued at current levels, the company and analysts are cautioning that growth may slow in early 2026 as carriers take a more conservative approach to acquisition spend. Multiple brokerages have adjusted targets lower while leaving Buy ratings intact, signaling confidence in the company's longer-term prospects but wariness about near-term demand timing.