BofA’s Hartnett says concentrated U.S. stock returns are likely to persist
Investing.com - Goldman Sachs raised its price target on IAC/InterActiveCorp (NASDAQ:IAC) to $46.00 from $45.00 while maintaining a Buy rating. According to InvestingPro data, the stock appears undervalued, trading at just 0.56 times book value, with analyst targets ranging from $38 to $63.
The investment bank highlighted IAC’s rebranding of DotdashMeredith to People Inc, which the company described as an effort to align content and brands with shifting consumer habits.
Goldman Sachs noted that IAC provided new disclosures addressing investor concerns about Google (NASDAQ:GOOGL) Search dependency, demonstrating how newer channels and organic traffic are driving digital revenue growth and margins.
The firm expressed continued optimism about the long-term potential of IAC’s Care.com asset, while also noting the company remains opportunistic but disciplined regarding mergers and acquisitions.
Goldman Sachs acknowledged that investors will likely remain focused on how IAC’s assets may face opportunities or challenges in an AI-first digital landscape, but maintained that IAC shares offer compelling value at current levels.
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 forecast of a negative $0.2927. Despite this earnings beat, the company’s revenue did not meet expectations, coming in at $586.9 million against the anticipated $601.35 million. These recent developments have raised concerns among investors about the company’s revenue performance and strategic direction. The earnings results have been a point of focus for analysts and investors alike, as they assess the implications for IAC’s future. No changes in analyst ratings, such as upgrades or downgrades, have been reported at this time. The mixed earnings results highlight the challenges IAC faces in balancing revenue growth with profitability. Investors continue to monitor the company’s financial health and strategic initiatives closely. As the market digests these results, the focus remains on how IAC plans to address these challenges moving forward.
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