RBC Capital analyst Rohit Kulkarni weighed in today with a favorable report on Angie’s List Inc (NASDAQ:ANGI), after the company’s fourth-quarter results came in above Street expectations. The analyst reiterated a Market Perform rating on the stock, and raised the price target to $10 (from $9), which represents a potential upside of 51.5% from where the stock is currently trading.
Kulkarni wrote, “We are incrementally “less cautious” on ANGI post-Q4 earnings. We continue to believe that ANGI is not a “broken business model”, but ongoing declines in member monetization and uncertain member acquisition trends raise questions about the total addressable market for a paid membership model. We are encouraged by member acquisition related marketing efficiencies, probably early signs of tiered-pricing & marketplace funnel optimization benefits. 2015 guidance somewhat implies that ANGI may have taken a giant step toward fixing its deteriorating unit economics problem.”
However, “We will stay on the sidelines until we see clear signs of stable member pricing, consistently improving marketing ROI, service provider sales-force productivity improvement and a path toward FCF generation.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Rohit Kulkarni has a total average return of 10.3% and a 48.0% success rate. Kulkarni is ranked #1064 out of 3476 analysts.