Barrington analyst James Goss has reiterated their bullish stance on QNST stock, giving a Buy rating today.
James Goss has given his Buy rating for Quinstreet’s stock (QNST) due to multiple factors. Goss acknowledges that while there is an expected recovery in the second half of the financial year, there are a few challenges to be overcome. Despite a guidance adjustment hinting at a softer second quarter, Quinstreet’s management is optimistic about a positive shift in insurance client spending come January. This shift, although potentially starting from a low base, is expected to stimulate double-digit revenue growth. Moreover, the leverage present within the company’s business model should enable more robust profit growth, particularly in non-auto insurance financial services and home services verticals.
Goss also acknowledges the challenges in the core auto insurance vertical, with the timing of a return to peak spending levels remaining uncertain. However, improvements are expected, with an anticipated surge of activity driven by increased consumer searches for new options. Additionally, Quinstreet’s other financial services and home services have shown stability and have compensated for the lower auto insurance spending, contributing significantly to the company’s revenue. The potential for growth in the home services vertical is also noted. Despite the uncertainties, Goss reaffirms an Outperform rating and a $14 price target, citing the company’s operational streamlining efforts and diversified consumer solutions as indicators of its potential for significant growth. He also believes that the stock is currently heavily discounted, making a positive stance justified.
According to TipRanks, Goss is an analyst with an average return of -9.5% and a 32.53% success rate. Goss covers the Communication Services sector, focusing on stocks such as Sirius XM Holdings, Cumulus Media, and iHeartMedia.
In another report released today, Craig-Hallum also maintained a Buy rating on the stock with a $10.00 price target.
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Quinstreet (QNST) Company Description:
QuinStreet, Inc. engages in the provision of media management services. It operates through the United States and International geographical segments. Its platform offers performance marketing products based from number of clicks, inquiries, calls, applications, and full customer acquisitions. The company was founded on April 16, 1999 and is headquartered in Foster City, CA.
Read More on QNST:
- QNST Earnings Report this Week: Is It a Buy, Ahead of Earnings?
- Barrington upgrades QuinStreet to Outperform on recent pullback
- QuinStreet upgraded to Outperform from Market Perform at Barrington
- QuinStreet price target lowered to $9 from $10 at B. Riley
- QuinStreet management to meet with Barrington
