IAC/InterActiveCorp. Coverage Initiated at Morgan Stanley (IACI)
Research analysts at Morgan Stanley started coverage on shares of IAC/InterActiveCorp. (NASDAQ:IACI) in a report released on Monday, Analyst RN reports. The firm set an “equal weight” rating and a $67.00 price target on the stock. Morgan Stanley’s target price indicates a potential downside of 2.08% from the stock’s previous close.
The analysts wrote, “We see IAC’s online personals segment as a bright spot in an otherwise uncertain collection of assets, but recognize the strong cash generation and capital returns that the Search segment has historically provided,” the report said. “Our sum-of-the-parts analysis points to a 8x EBITDA multiple on the standalone Match segment at our $67 base case.” As IACI’s Search segment remains dependent on Google, it continues to rely on Google’s monetization engine for the majority of its revenue, and unforeseen changes to quality algorithms, pricing and other mechanics may impact IACI’s results unexpectedly, the report noted. “While IAC likely remains one of Google’s largest search partners, we believe that Google is more likely to act in the best interest of consumers than in the best interest of its monetization partners, and anticipate that future changes may carry impacts similar to the one IAC experienced in 3Q2013,”
IAC/InterActiveCorp. (NASDAQ:IACI) traded up 1.23% on Monday, hitting $69.26. 598,819 shares of the company’s stock traded hands. IAC/InterActiveCorp. has a 1-year low of $38.20 and a 1-year high of $70.44. The stock has a 50-day moving average of $60.64 and a 200-day moving average of $54.18. The company has a market cap of $5.769 billion and a P/E ratio of 24.24.
IAC/InterActiveCorp. (NASDAQ:IACI) last posted its quarterly earnings results on Tuesday, October 29th. The company reported $1.29 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.95 by $0.34. The company had revenue of $756.87 million for the quarter, compared to the consensus estimate of $805.70 million. During the same quarter last year, the company posted $0.71 earnings per share. IAC/InterActiveCorp.’s revenue was up 5.9% compared to the same quarter last year. On average, analysts predict that IAC/InterActiveCorp. will post $3.98 earnings per share for the current fiscal year.
IACI has been the subject of a number of other recent research reports. Analysts at Deutsche Bank reiterated a “buy” rating on shares of IAC/InterActiveCorp. in a research note to investors on Friday, December 20th. They now have a $81.00 price target on the stock, up previously from $55.00. Separately, analysts at Jefferies Group raised their price target on shares of IAC/InterActiveCorp. from $50.00 to $63.00 in a research note to investors on Friday, December 20th. Finally, analysts at Wells Fargo & Co. downgraded shares of IAC/InterActiveCorp. from an “outperform” rating to a “market perform” rating in a research note to investors on Friday, December 20th. They now have a $70.00 price target on the stock. They noted that the move was a valuation call. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating and nine have assigned a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and an average price target of $62.83.
IAC/InterActiveCorp (NASDAQ:IACI) is a media and Internet company consists of more than 150 brands and products.
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