Citizens JMP maintains Market Perform rating on ANGI stock amid growth signs

Investing.com - Citizens JMP analyst reiterated a Market Perform rating on ANGI Inc (NASDAQ:ANGI) on Monday, citing improvements in the company’s marketplace fundamentals. Trading at $17.14, InvestingPro analysis suggests the stock is currently undervalued, with the company maintaining a GOOD overall financial health score.

The research firm noted ANGI’s improved efficiency in professional service provider acquisition and highlighted the company’s return to year-over-year growth in proprietary service requests and leads during the second quarter of 2025. The company maintains impressive gross profit margins of nearly 95%, despite a 14.4% year-over-year revenue decline.

This marks the first such increase for ANGI since 2021, representing a potential turning point for the home services marketplace platform.

Citizens JMP identified several upcoming catalysts for ANGI, including enhanced homeowner questioning, broader adoption of AI-powered homeowner assistance, migration to a unified professional product, and the launch of a self-enrollment path for service provider acquisition.

Despite these positive developments, the firm observed that ANGI’s return to growth in proprietary service requests came alongside a significant increase in consumer marketing spend, while competition from rivals Thumbtack and Taskrabbit appears to be intensifying. For deeper insights into ANGI’s competitive position and 10+ additional exclusive ProTips, visit InvestingPro, where you’ll find comprehensive analysis in our Pro Research Report.

In other recent news, ANGI Inc. reported its second-quarter 2025 earnings, highlighting significant developments in its strategic direction. Despite a reduction of over $400 million in revenue, the company noted improvements in EBITDA and free cash flow, attributed to a focus on higher-quality transactions. This financial update has led Truist Securities to raise its price target for ANGI to $28, maintaining a Buy rating. The firm points to a gradual progression towards positive revenue growth in fiscal year 2026 as a key factor in their decision.

UBS also adjusted its price target for ANGI, increasing it to $22 from $20, while maintaining a Neutral rating. The revision follows ANGI’s reported growth in proprietary Service Requests and Leads, which grew 7% and 16% year-over-year, respectively. This marks the first quarter of growth since early 2021, driven by investments in onboarding high-quality service professionals. These recent developments reflect ANGI’s strategic focus and market position improvements.

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