🤯 Have you seen our AI stock pickers’ 2024 results? 84.62%! Grab November’s list now.Pick Stocks with AI

Wells Fargo raises IAC stock target, maintains overweight

EditorAhmed Abdulazez Abdulkadir
Published 05/14/2024, 08:14 AM
IAC
-

On Tuesday, Wells Fargo made a positive adjustment to its outlook on IAC/InterActiveCorp (NASDAQ:IAC), raising the price target to $84.00 from the previous $82.00. The firm maintained its Overweight rating on the company's shares. The revision reflects a more favorable view of the company's recent performance and future prospects.

IAC's subsidiary, ANGI, reported a year-over-year revenue decline of 13%, an improvement over the 16% decrease observed in the fourth quarter. The Ads & Leads segment experienced a 15% drop in revenue year-over-year, totaling $250 million, while the Services segment saw a more significant decline of 28% year-over-year, bringing in $21 million.

Despite the overall decrease in monetized transactions, which fell by 15% year-over-year, there was a notable increase of 24% in monetized transactions per service request, indicating an uptick in service provider acceptance rates and lead quality.

Service provider retention rates at 26 weeks also showed a significant year-over-year increase of 24%. International revenue climbed by 18% year-over-year to $35 million. The company's EBITDA was reported at $36 million, marking a 21% year-over-year increase excluding items, and outperforming Wall Street expectations by 16%.

Looking forward, IAC has maintained its full-year 2024 EBITDA guidance in the range of $120-150 million. The midpoint of this guidance represents a 9% increase over the pre-announcement average estimate of $124 million by analysts.

Wells Fargo's commentary highlighted expectations that the new CEO, Jeff Kip, will apply a successful international strategy to the U.S. market, potentially driving further growth for the company.

InvestingPro Insights

Wells Fargo's recent upbeat assessment of IAC/InterActiveCorp (NASDAQ:IAC) is just one facet of the company's financial landscape. According to real-time data from InvestingPro, IAC's market capitalization stands at $4.85 billion, with a Price/Book ratio of 0.79 as of Q1 2024, suggesting that the company's stock might be undervalued compared to its net asset value. Despite analysts' concerns about a potential sales decline and a drop in net income for the current year, IAC has shown a strong return over the last month, with a 16.85% increase in stock price, indicating a potential rebound or market optimism.

InvestingPro Tips highlight that IAC operates with a moderate level of debt and possesses liquid assets that exceed its short-term obligations, providing financial stability. However, the company is not expected to be profitable within the year and does not pay a dividend, which might be a consideration for income-focused investors. For those interested in a deeper dive into IAC's financial health and future prospects, InvestingPro offers more than 8 additional tips on their platform. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and gain access to comprehensive analyses that could guide investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.