Jefferies analyst James Heaney CFA initiates coverage on $IAC Inc (IAC.US)$ with a buy rating, and sets the target price at $60.
According to TipRanks data, the analyst has a success rate of 51.6% and a total average return of 19.8% over the past year.
Furthermore, according to the comprehensive report, the opinions of $IAC Inc (IAC.US)$'s main analysts recently are as follows:
Following the Q3 report, there are indications that Angi may encounter additional challenges in early 2025. Nevertheless, management has conveyed a sense of confidence for the period following these challenges. Additionally, a potential spin could mitigate the longstanding impact on IAC's equity, which has been in place for seven years.
IAC is contemplating a distribution of its 85% ownership interest in Angi to its shareholders. Concurrently, Angi is in the midst of an operational overhaul, as it saw its revenue decline by more than 15% year-over-year in the third quarter.
The third-quarter outcomes were largely overlooked due to IAC's announcement to spin off Angi Inc., which comprises approximately 28% of IAC's market valuation. This move is seen as an attempt by IAC to release capital for additional value generation. Considering the current negligible valuation of IAC's remaining assets excluding Angi and MGM, the spinoff is perceived as a chance to surface shareholder value from increasingly profitable components such as Dotdash-Meredith.
Note:
TipRanks, an independent third party, provides analysis data from financial analysts and calculates the Average Returns and Success Rates of the analysts' recommendations. The information presented is not an investment recommendation and is intended for informational purposes only.
Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
TipRanks provides a ranking of each analyst up to 5 stars, which is representative of all recommendations from the analyst. An analyst's past performance is evaluated on a scale of 1 to 5 stars, with more stars indicating better performance. The star level is determined by his/her total success rate and average return.
