Northland Securities Starts Angie's List (ANGI) at Outperform; Proven Long-Term Characteristics
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Price: $24.49 --0%
Rating Summary:
10 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 6
Rating Summary:
10 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 6
Trade ANGI Now!
Northland Securities initiates coverage on Angie's List (NASDAQ: ANGI) with a Outperform. PT $15.00.
The firm comments, "While the recent hyper-growth in member and service provider (SP) additions have elevated selling and marketing costs (as a % of sales), we believe the proven long-term characteristics of ANGI's model far outweigh any near-term risks and investors should focus on: 1) estimated SP renewal contribution margins of ~80%, 2) 70%+ renewal rates for both SPs and members, 3) operating margins in older cohorts estimated at 23%, 4) the high degree of revenue visibility (we estimate ~65%) and 5) <1% advertising penetration rates of enormous TAM. While we believe a discount is warranted for ANGI relative to its peers, given it has not achieved profitability, we believe its top line growth rate, which represents better than or equal growth to its peers, however, does not warrant its current 44% implied discount to its 4.5x peer group multiple of EV/’13E sales."
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 $10.78 yesterday, with a 52 week range of $8.94-$19.82.
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The firm comments, "While the recent hyper-growth in member and service provider (SP) additions have elevated selling and marketing costs (as a % of sales), we believe the proven long-term characteristics of ANGI's model far outweigh any near-term risks and investors should focus on: 1) estimated SP renewal contribution margins of ~80%, 2) 70%+ renewal rates for both SPs and members, 3) operating margins in older cohorts estimated at 23%, 4) the high degree of revenue visibility (we estimate ~65%) and 5) <1% advertising penetration rates of enormous TAM. While we believe a discount is warranted for ANGI relative to its peers, given it has not achieved profitability, we believe its top line growth rate, which represents better than or equal growth to its peers, however, does not warrant its current 44% implied discount to its 4.5x peer group multiple of EV/’13E sales."
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 $10.78 yesterday, with a 52 week range of $8.94-$19.82.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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