IAC (IAC): Suntrust's Bob Peck Raises Ests And Expects Increasing Focus On Vimeo
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SunTrust Robinson Humphrey analyst, Bob Peck, reiterated his Buy rating on shares of IAC/InterActiveCorp (NASDAQ: IAC) and raised his price target to $73 from $70 expecting the company to use the 3Q earnings call for a teach in on Vimeo. Match and Homeadvisor are the businesses currently driving growth but Vimeo could be meaningful in the coming year.
The analyst believes 4 things could contribute to overall value for the company: 1) Management continues to educate investors on the different parts of IAC to its Sum-of-the-Parts story, 2) Match Group (NASDAQ: MTCH) continues strong growth led by Tinder and the turnaround with the legacy and affinity brands in North America, 3) 2nd quarter of the new Google Agreement may provide additional clarity into its long-term effects, and 4) Continuation of ~30%+ revenue growth for HomeAdvisor.
Estimates increase slightly for 3Q and 2016 taking Revenues/EBITDA/EPS for 3Q and 2016 from $774M/$127M/$0.62 and $3,145M/$496M/$2.52 to $764M/$128M/$0.63 and $3,126M/$496M/$2.53. On 2017 estimates, the new $73 price target implies 8.8x EV/EBITDA, 1.8x EV/ Revenues, 14.6x P/E, and 18.1x FCF.
Shares of IAC/InterActiveCorp closed at $61.55 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
Related EntitiesSunTrust Robinson Humphrey, Earnings
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