Index falls as earnings results weigh; pound above $1.33, Bodycote soars
On Monday, Benchmark analysts reaffirmed their Buy rating and $105.00 price target for IAC/InterActiveCorp (NASDAQ:IAC), currently trading at $41.54 and near its 52-week low, ahead of the company’s conference call scheduled for Wednesday. According to InvestingPro data, the stock maintains a bullish analyst consensus with targets ranging from $48.50 to $105.00. The call is anticipated to be a significant event, as it marks the first occasion in approximately ten years that investors will hear directly from the company’s founder for an extended period.
The reiteration of the Buy rating comes at a time of growing investor concern, particularly regarding the future of Angi (NASDAQ:ANGI) and the core IAC business, especially in terms of mergers and acquisitions (M&A). Analysts are evaluating a wide range of factors, including the fundamentals and expectations for all segments of the company, as well as potential discussions about spin-offs and future strategies.
Despite the uncertainties, Benchmark analysts maintain their stance on the valuation of the core IAC business, excluding MGM, and Angi. They argue that the core IAC business is worth more than $1 billion and reject the notion that Angi’s value is only $1 billion, especially if it can resume growth in 2026 or show significant improvement in the second half of 2025.
However, they acknowledge that Angi’s performance is still something that needs to be demonstrated ("a show-me story"), and that clarity on IAC’s roadmap is necessary for a potential increase in the company’s stock value. The upcoming conference call is expected to provide investors with insights into the company’s direction and the founder’s perspective, although the analysts do not anticipate a major shift in messaging. InvestingPro analysis suggests IAC is currently undervalued, with additional insights available in the comprehensive Pro Research Report covering this and 1,400+ other top US stocks.
In other recent news, IAC/InterActiveCorp has been making strategic moves that are expected to positively impact the company’s future. Citi has maintained its Buy rating on IAC, highlighting the recent approval for IAC to spin out its ANGI Homeservices Inc. shares as a significant catalyst. The spin-out, approved earlier this year, is expected to reveal IAC’s underlying assets’ value, which analysts estimate to be approximately $300 million.
In addition, IAC has extended its services agreement with Google (NASDAQ:GOOGL) to March 31, 2026, a move that underscores the ongoing business relationship between the two companies. This extension is expected to influence IAC’s operational dynamics with Google, with the specifics to be disclosed in IAC’s forthcoming annual report.
Moreover, Benchmark has reiterated its Buy rating for IAC, following the announcement of the Angi spinoff and a significant leadership shift. Joey Levin will step down as CEO to assume the role of Executive Chairman at Angi, while continuing to advise IAC. This leadership change is seen as a strategic move that aligns with IAC’s past strategies.
Lastly, IAC has designated Care.com as a separate segment in its financial reporting structure. This strategic move aims to offer investors and analysts more detailed insights into the operational results and financial health of the care service platform. These recent developments indicate IAC’s commitment to enhancing shareholder value and optimizing its business portfolio.
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