Angie's List (ANGI) Surges Higher on Q1; Bullish Anayst Can't Keep Ahead

April 25, 2013 11:20 AM EDT Send to a Friend
Get Alerts ANGI Hot Sheet
Price: $6.04 +1.17%

Rating Summary:
    3 Buy, 16 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 3 | Down: 17 | New: 2
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Angie's List (NASDAQ: ANGI) is rocketing 27 percent higher to $25.57 following strong Q1 results, and now has surpassed the $25 price target set today by bullish analyst Kerry Rice at Needham & Company. Notably the analyst raised his price target to $24 on Tuesday, before the results.

Rice called the company's first quarter results "solid" and highlighted revenue growth and margin expansion.

"The improved margin was largely driven by Marketing efficiencies and lower Selling expenses," the analyst notes. "While we expect Angie's to continue aggressively growing its member and service provider base, we also estimate solid margin expansion throughout 2013. Given the cash generation in the quarter, we believe liquidity worries should dissipate."

The company generated ~$10 million of operating cash flow in 1Q13 which compares favorably to the firm's estimated cash burn of $4 million. "Although the company did not update its previously stated expectations of hitting a liquidity trough of $60M this year, it did indicate it expects to be cash flow positive for the year. We believe the outlook has improved and now estimate the floor at $65 - 70M."

The firm trimmed its FY 2013 EPS estimate from ($0.35) to ($0.36) and FY 2014 EPS estimate from $0.34 to $0.30.

For an analyst ratings summary and ratings history on Angie's List click here. For more ratings news on Angie's List click here.

Shares of Angie's List closed at $20.11 yesterday.


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