Street Calls of the Week
Investing.com - Benchmark maintained its Buy rating and $60.00 price target on IAC/InterActiveCorp (NASDAQ:IAC) stock on Tuesday. According to InvestingPro data, the stock appears undervalued, trading at $36.49 with a market capitalization of $2.92 billion.
The research firm noted IAC shares have been trading in a range between $32 and $42 since April, suggesting market uncertainty about the company’s strategic direction.
Benchmark highlighted several factors contributing to investor hesitation, including the evolution of Dotdash, potential M&A activity involving MGM, and questions about succession planning within the company.
The firm calculated that after excluding MGM and IAC’s Turo cost basis, the entire company is valued at approximately $500 million, which it considers significantly undervalued even if applying conservative multiples to Dotdash.
Benchmark also suggested that with higher valuation requirements for acquisitions, IAC might return to share repurchases similar to those seen in previous quarters.
In other recent news, IAC/InterActiveCorp reported its Q2 2025 earnings, delivering an unexpected earnings per share (EPS) of $2.57, which was a positive surprise compared to the anticipated negative $0.2927. However, the company’s revenue fell short of expectations, coming in at $586.9 million against the forecasted $601.35 million. This discrepancy in revenue led to investor concerns despite the positive EPS outcome. In response to the earnings report, Jefferies adjusted its price target for IAC from $51.00 to $45.00, maintaining a Buy rating, citing that the results were broadly in line with Street expectations but not with higher investor hopes. Meanwhile, Goldman Sachs increased its price target for IAC slightly to $46.00, also maintaining a Buy rating, and highlighted the company’s efforts in digital growth through the rebranding of DotdashMeredith to People Inc. These developments reflect a mixed outlook for IAC, with analysts focusing on both the earnings surprise and strategic adjustments in the digital landscape.
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