Needham & Company Downgrades Angie's List (ANGI) to Hold

Needham & Company downgraded Angie's List (NASDAQ: ANGI) from Buy to Hold following weak Q3 results and guidance.

Analyst Kerry Rice commented, "We are downgrading Angie's List to HOLD from BUY given our expectation for slower growth across its revenue streams. While the company is implementing strategies to reaccelerate Member, Service Provider, and Commerce revenue growth, we believe the strategies are a work-in-progress and that their impact is not likely to reaccelerate growth for a couple of quarters. We are encouraged by the company's guidance of reaching FY EBITDA profitability, but striking the delicate balance between growth and profitability is likely to be an ongoing challenge. We believe Angie's share price may have bottomed for now, but we do not see near-term catalysts to propel shares higher."

The firm adjusted FY 2014 EPS from ($0.20) to ($0.15) and FY 2015 EPS from $0.39 to $0.10.

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 $6.67 yesterday.

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