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UPDATE: Canaccord Genuity Downgrades Angie's List (ANGI) to Hold; Profitability Delayed

August 30, 2012 7:10 AM EDT Send to a Friend
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Price: $7.67 --0%

Rating Summary:
    7 Buy, 12 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 12 | Down: 7 | New: 27
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(Updated - August 30, 2012 8:44 AM EDT)

Canaccord Genuity downgraded Angie's List (NASDAQ: ANGI) from Buy to Hold with a price target of $12.50 (from $20.00).

Analyst, Michael Graham, said, "After re-visiting key model assumptions, we believe Angie’s List may stay in investment mode for longer than originally anticipated. We now forecast EPS profits in 2015 (previously 2014) on higher selling and marketing spend and slightly higher member churn. We continue to believe Angie’s List is building a sustainable model, but believe delayed profitability may dampen near-term stock appreciation potential."

"We believe heavy short interest (~ 25% of float) and the completion of recent VC distributions may contribute to near-term volatility, while longer term investors may puzzle over how to think about cash consumption vs. growth and the potential need for capital...our EBITDA estimates for 2012, 2013, & 2014 go from $(53.7)M, $(31.2)M, and $23.7 to $(54.5)M, $(32.9)M, and $3.0M."

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 $10.22 yesterday.




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