MediaAlpha, Inc. (MAX) saw its stock plummet by a staggering 14.72% during the pre-market trading session on Tuesday, February 25, 2025. The steep decline was primarily driven by analysts lowering their price targets on the insurance customer acquisition platform operator, indicating concerns about its future growth and profitability.
According to reports, Keefe Bruyette & Woods cut its price target on MediaAlpha to $19 from $22, citing a softer-than-expected outlook. Additionally, JP Morgan reduced its target price to $13 from $15, further exacerbating the stock's downward pressure.
The downward revisions by analysts suggest apprehensions regarding MediaAlpha's ability to sustain its growth trajectory and maintain profitability levels. While specific reasons were not provided in the news coverage, factors such as market conditions, competition, or the company's recent financial performance may have contributed to the analysts' reassessment of their estimates.