Jefferies lowers IAC stock price target to $45 from $51, maintains Buy rating

Investing.com - Jefferies has reduced its price target on IAC/InterActiveCorp (NASDAQ:IAC) to $45.00 from $51.00 while maintaining a Buy rating on the stock. According to InvestingPro analysis, IAC appears undervalued at its current price of $34.38, trading at just 0.56 times book value.

The price target adjustment follows IAC’s second-quarter results, which Jefferies described as "broadly in-line" with Street expectations but fell short of higher investor expectations. The firm noted that investors were also anticipating continued share buybacks from the company. Despite recent challenges, IAC maintains strong liquidity with a current ratio of 2.87, indicating solid ability to meet short-term obligations.

After hosting meetings with IAC management, Jefferies gained better insight into the company’s near-term investment priorities at People Inc. These priorities focus on building out D/Cipher+ off-platform ad targeting, content, and app growth marketing.

Despite lowering its price target and financial estimates, Jefferies remains positive on IAC shares, citing a widening valuation discount as justification for maintaining its Buy rating.

IAC/InterActiveCorp operates as a holding company with investments across various internet and media businesses, including Dotdash Meredith (NYSE:MDP), Angi Inc., and Care.com.

In other recent news, IAC/InterActiveCorp reported its Q2 2025 earnings, surprising analysts with an earnings per share (EPS) of $2.57, significantly above the forecast of a negative $0.2927. However, the company’s revenue did not meet expectations, coming in at $586.9 million against a forecasted $601.35 million. This revenue shortfall has raised investor concerns despite the positive EPS surprise. Separately, Goldman Sachs adjusted its price target for IAC to $46.00 from $45.00, while maintaining a Buy rating. The investment bank noted IAC’s rebranding of DotdashMeredith to People Inc as a strategic move to align with changing consumer habits. These developments indicate a mixed picture for IAC, with positive earnings but challenges in meeting revenue forecasts.

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