EverQuote rallies after ‘surprising’ Court of Appeals ruling

B. Riley says the United States Court of Appeals for the Eleventh Circuit on Friday night struck down the Federal Communications Commission’s One-to-One Consent Rule, which sought to redefine the meaning of “express written consent” under the Telephone Consumer Protection Act. The ruling is “surprising,” as the One-to-One Consent Rule was slated to go into effect on January 27, the analyst tells investors in a research note. The firm expects EverQuote (EVER) will be a “bigger beneficiary” of the vacated ruling, given that 25%-30% of its revenue would have been impacted by the consent changes. For QuinStreet (QNST), the One-to-One Consent Rule was expected to have a minimal impact on the company’s auto insurance business, but impact up to 20%-30% of its Home Services business, adds Riley. Shares of EverQuote are up 19% to $20.87 in morning trading while QuinStreet is up 7% to $23.10. The analyst has a Buy rating on both stocks.