UPDATE: RBC Capital Downgrades Angie's List (ANGI) to Sector Perform

(Updated - July 24, 2014 8:17 AM EDT)

RBC Capital downgraded Angie's List (NASDAQ: ANGI) from Outperform to Sector Perform with a price target of $10.00 (from $18.00).

Analyst Rohit Kulkarni said, "As highlighted in our “Updating The Long Thesis” report, we continue to believe that ANGI is not a “broken business model” but accelerating declines in member monetization and uncertain member acquisition trends raise questions about the total addressable market for a paid membership model. And ANGI’s short-term risk profile is elevated as the company might enter a capital requirement air pocket given delayed profitability combined with ramped-up capex investments."

"We are stepping to the sidelines until we see clear signs of stable pricing, improving marketing ROI, and a path toward EBITDA profitability," he added.

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 $10.17 yesterday.

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