IAC/InterActiveCorp (IAC) Receives a Buy from Aegis Capital

By Jason Carr

In a report released yesterday, Victor Anthony from Aegis Capital reiterated a Buy rating on IAC/InterActiveCorp (IACResearch Report), with a price target of $250. The company’s shares closed yesterday at $174.49.

Anthony said:

“We decreased our valuation on MTCH (see note here) and increased our valuation for ANGI. IAC’s 3Q18 revenue and Adj. EBITDA was 3.5% and 5.3% above our estimates, resp. ANGI’s revenue growth accelerated 300bps to 21% YoY, and importantly, growth in revenue per SP accelerated to 14% 2Q, reaching an all time high of $1,034. Guidance for 4Q calls for another 100bps of revenue growth acceleration, while the Adj. EBITDA guide factors losses from Handy and other investments to accelerate revenue growth in 2019, for which ANGI sees growth accelerating to an aspirational 25%. Now that ANGI has mostly solved the SP supply constraints and has more liquidity in the network, they plan to increase investments in marketing, in the salesforce, and in Handy.”

According to TipRanks.com, Anthony is a top 100 analyst with an average return of 15.5% and a 63.9% success rate. Anthony covers the Services sector, focusing on stocks such as Qurate Retail Group Inc, comScore, and Cimpress.

Currently, the analyst consensus on IAC/InterActiveCorp is a Strong Buy with an average price target of $239.82, which is a 37.4% upside from current levels. In a report issued on November 9, Barclays also maintained a Buy rating on the stock with a $227 price target.

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Based on IAC/InterActiveCorp’s latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of $146 million. In comparison, last year the company had a net profit of $180 million.

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IAC/InterActiveCorp. engages in the provision of media and Internet services. It operates through the following business segments: Match Group, ANGI Homeservices, Video, Applications, Publishing, and Other. The Match Group segment provides dating products, operating a portfolio of several brands, including Match, Tinder, PlentyOfFish, and OkCupid.