Angi Increases Stake In MyBuilder Business By 20%; Street Remains Bullish

Angi has acquired an additional 20% stake in its UK-based MyBuilder business, an online marketplace for consumers to find quality tradesmen. Notably, Angi originally acquired a 75% stake in MyBuilder in 2017.

Per the terms of the acquisition, Angi (ANGI) said that it “will record a one-time expense, impacting Adjusted EBITDA and operating income by approximately $6 million in the quarter ending March 31, 2021.”

On Feb. 3, Angi, previously known as ANGI Homeservices, reported a 4Q loss of $0.03 per share, which was wider than analysts’ expectations for a loss of $0.02 per share. Meanwhile, revenues grew 12% to $359.3 million and topped the consensus estimate of $357.2 million in 4Q. (See Angi stock analysis on TipRanks)

On March 14, Wells Fargo analyst Brian Fitzgerald maintained a Buy rating and a price target of $18 (38.5% upside potential) on the stock. After the February metrics were released on March 9, the analyst said in a note to investors, “While ANGI continued to show monetization challenges—which we expect to be gradually addressed via migration to fixed price—we came away encouraged by continued evidence of robust consumer demand, with Marketplace service requests accelerating 700 bps vs. January to 17% YY growth.”

Overall, consensus among analysts is a Strong Buy based on 9 Buys and 1 Hold. The average analyst price target of $17.95 implies upside potential of about 38.1% to current levels. Shares have gained about 158% in one year.

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