Wells Fargo Upgrades IAC/InterActiveCorp (IACI) to Outperform

Wells Fargo upgraded IAC/InterActiveCorp (NASDAQ: IACI) from Market Perform to Outperform with a valuation range of $53-$56.

The firm comments, "We view recent share price weakness as an attractive entry point for investors as we believe shares currently discount threats of mobile migration and recent traffic trends within IAC's portfolio. We are upgrading the shares of IACI to Outperform from Market Perform. In this report we examine the operating unit that we believe is the primary focus of mobile-related risk (Search/Apps). We also examine traffic source trends for key Ask.com. Based on user data and device ownership demo profiles, we believe Ask users are generally mobile laggards, and therefore not leading drivers of mobile search adoption. We do see risk associated with toolbars, but again believe that audience dynamics likely insulate the business from leading edge mobile trends."

The firm's Q4 EPS remains unchanged at $0.77. Though they lower 2013 non-GAAP EPS expectations modestly to $3.84 (versus $3.90 previously), which remains ahead of consensus.

For an analyst ratings summary and ratings history on IAC/InterActiveCorp click here. For more ratings news on IAC/InterActiveCorp click here.

Shares of IAC/InterActiveCorp closed at $44.15 yesterday.

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