BofA/Merrill Lynch downgraded Angie's List (NASDAQ: ANGI) from Buy to Neutral with a price target of $12.00 (from $16.00) saying the thesis is not playing out.

While they like the long-term opportunity, analyst Paul Bieber said the thesis about improving sales force productivity and diminishing member ARPU declines is not playing out as expected. He also noted the company significantly reduce its marketing spend in 3Q to improve 2H profitability.

The firm cut FY 2014 EPS from ($0.25) to ($0.17), FY 2015 EPS from $0.15 to $0.12 and FY 2016 EPS from $0.36 to $0.26.

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.

Analyst Comments Analyst EPS Change Analyst EPS View Analyst PT Change Downgrades

First Analysis Downgrades Angie's List (ANGI) to Equal WeightJuly 24, 2014 9:01 AM Oppenheimer Downgrades Angie's List (ANGI) to PerformJuly 24, 2014 7:31 AM MKM Partners Downgrades Angie's List (ANGI) to NeutralJuly 24, 2014 7:30 AM Janney Downgrades Angie's List (ANGI) to NeutralJuly 24, 2014 7:29 AM UPDATE: RBC Capital Downgrades Angie's List (ANGI) to Sector PerformJuly 24, 2014 6:41 AM