In a research note released this morning, Topeka Capital analyst Victor Anthony reaffirmed a Buy rating on IAC/ InterActiveCorp. (IACI) but lowered his price target to $94 (from $98) following the company’s announcement of its 2Q14 results.
Anthony wrote, “Revenue was 4% below our estimate, due to lower Search and Media revenues, and Adj. EBITDA that was 1% above our estimate, on higher Search margins. Tinder monetization begins late 3Q/early 4Q. Management reiterated their aspiration goal of $500mm in EBITDA for Match in 2016, ex-Tinder. HomeAdvisor growth accelerated and trends look solid, while Vimeo subs and revenue growth were robust. Search remains challenged, particularly at Applications. The quarterly dividend was raised by 42% to $0.34 and IAC did not repurchase shares for the second consecutive quarter. We continue to recommend purchase of the shares in anticipation of a spin of the Match Group, which should unlock meaningful value in the shares”.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform analyst Victor Anthony has a 21.1% average return and a 73.3% success rate. Anthony has an 18.2% average return when recommending IACI, and is ranked #38 out of 3195 analysts.