Deutsche Bank Starts IAC/InterActiveCorp (IACI) at Buy, Great Risk/Reward Trade-off
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Price: $50.68 -2.86%
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Deutsche Bank initiated coverage on IAC/InterActiveCorp (NASDAQ: IACI) with a Buy rating and price target of $63.00.
Analysts at Deutsche Bank think IAC/InterActiveCorp (Nasdaq: IACI) offers investors one of the best risk/reward trade-offs in the internet space. Generally sentiment seems persistently negative around IAC. The main reason for negative investor sentiment is that IAC’s businesses, aside from Personals, are not viewed as on-par with the quality of some of the other companies in the space.
“We would argue that IAC has done a better job than many peers at getting the most out of the assets it manages,” said analyst Ross Sandler.
“Ask is a good example; it was on a $50m annualized revenue run rate when IAC acquired it in 2005, and now is on pace to generate around $600m in revenue in 2012.”
The bottom line is that analysts do not expect any of IAC’s businesses to materially change trajectory, which gives them confidence that returns can continue.
“The company has repurchased or paid dividends of a REMARKABLE $2.1B since 2008, a significant sum considering the $5B market capitalization. Match is one of the best subscription businesses in the Internet, and if IAC were to spin the Personals business at some point, additional shareholder value could be created,” said Sandler.
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 $54.01 yesterday.
Analysts at Deutsche Bank think IAC/InterActiveCorp (Nasdaq: IACI) offers investors one of the best risk/reward trade-offs in the internet space. Generally sentiment seems persistently negative around IAC. The main reason for negative investor sentiment is that IAC’s businesses, aside from Personals, are not viewed as on-par with the quality of some of the other companies in the space.
“We would argue that IAC has done a better job than many peers at getting the most out of the assets it manages,” said analyst Ross Sandler.
“Ask is a good example; it was on a $50m annualized revenue run rate when IAC acquired it in 2005, and now is on pace to generate around $600m in revenue in 2012.”
The bottom line is that analysts do not expect any of IAC’s businesses to materially change trajectory, which gives them confidence that returns can continue.
“The company has repurchased or paid dividends of a REMARKABLE $2.1B since 2008, a significant sum considering the $5B market capitalization. Match is one of the best subscription businesses in the Internet, and if IAC were to spin the Personals business at some point, additional shareholder value could be created,” said Sandler.
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 $54.01 yesterday.
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