Wells Fargo Believes IAC/InterActiveCorp (IAC) Won’t Stop Here


Wells Fargo analyst Peter Stabler maintained a Buy rating on IAC/InterActiveCorp (NASDAQ: IAC) today and set a price target of $220. The company’s shares closed yesterday at $182.60, close to its 52-week high of $183.77.

Stabler commented:

“We continue to see compelling risk/reward in shares, supported by our sum-of-the-parts valuation model. Momentum at MTCH (Market Perform, $49.28) continues, with our estimates and target price climbing (to $47 from $41 previously). Operating metrics and further demonstration of operating leverage lead us to increase our estimates and target price for ANGI (Outperform, $18.19) to $21 from $16. We continue to believe that current share levels embed an implied negative enterprise value for IAC’s non-MTCH/ANGI assets despite future opportunity and forecasted EBITDA margin of ($156M in 2019E). In addition to flow through revisions from adjustments to our ANGI and MTCH models, we make a number of revisions to our segment estimates for IAC’s owned/operated assets. Based on results and model revisions, our FY’18E revenue/pro forma adj.”

According to TipRanks.com, Stabler is a top 100 analyst with an average return of 33.7% and a 82.6% success rate. Stabler covers the Technology sector, focusing on stocks such as ANGI Homeservices Inc, Match Group Inc, and Yelp Inc.

IAC/InterActiveCorp has an analyst consensus of Strong Buy, with a price target consensus of $197.88, implying an 8.4% upside from current levels. In a report issued on August 2, Barclays also maintained a Buy rating on the stock with a $196 price target.

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IAC/InterActiveCorp’s market cap is currently $15.28B and has a P/E ratio of 35.18. The company has a Price to Book ratio of 5.93.

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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.

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