MediaAlpha, Inc. (MAX) stock plunged 9.73% in pre-market trading on Tuesday, February 25, 2025. The company, which operates an insurance customer acquisition platform, saw its shares tumbling ahead of the market open.
The pre-market slump appears to be driven by analysts lowering their price targets on the stock. 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.
The downward revisions by analysts suggest concerns over MediaAlpha's future growth prospects and profitability. While specific reasons were not provided in the news coverage, analysts may have reevaluated their estimates based on factors such as market conditions, competition, or the company's recent financial performance.