JMP maintains ANGI stock market outperform, $27.50 target

Published 16/04/2025, 10:06
JMP maintains ANGI stock market outperform, $27.50 target

On Wednesday, ANGI HomeServices (NASDAQ:ANGI) received a reaffirmed Market Outperform rating and a steady price target of $27.50 from JMP Securities. The company’s stock experienced a decline of approximately 6% following the announcement of its fourth-quarter results for the year 2024. According to InvestingPro data, ANGI maintains strong fundamentals with a healthy current ratio of 2.14 and operates with moderate debt levels. The dip in share value is attributed to the company’s weaker than expected revenue guidance, as it continues to navigate challenges that affect its revenue growth, with analysts anticipating a 13% revenue decline this year.

The decrease in ANGI’s stock value also reflects a broader trend, with InvestingPro data showing a significant 51.5% decline over the past six months. This trend is believed to be influenced by the wider economic uncertainty and industry-specific concerns, particularly those related to tariff policies implemented by the current administration. As a result, ANGI’s stock is currently trading below its two-year average when evaluating enterprise value against forward EBITDA and sales multiples, with a current EV/EBITDA ratio of 6.8x and a price-to-book ratio of 0.59.

Despite the recent downward trend in the market, JMP analysts hold a positive long-term outlook for ANGI HomeServices. They argue that the company is well-positioned to achieve sustainable growth in revenue and margin expansion. ANGI’s market strength lies in the home repair, maintenance, and remodeling sector, which is increasingly moving towards digital platforms for matching services, booking jobs, and processing payments.

Looking forward, the focus for investors is expected to remain on ANGI’s revenue trajectory and the timeline for its return to growth. JMP’s confidence in the company’s future performance is reflected in their price target, which is based on an enterprise value to estimated 2026 EBITDA multiple of approximately 8 times.

In other recent news, Angi Inc. has completed a significant equity restructuring following its spin-off from IAC Inc. The restructuring involved converting 41,701,064 shares of Angi Class B common stock into Class A shares without monetary consideration. This move was part of the broader corporate strategy post-separation from IAC, which was finalized on March 31, 2025. Concurrently, Angi has been included in the S&P SmallCap 600 index, replacing The ODP Corp., which could potentially enhance its visibility among investors. Additionally, Angi enacted a 1-for-10 reverse stock split of its Class A and Class B common stock, effective immediately, to consolidate share value.

In a separate transaction, Angi issued over 1.2 million shares of its Class A common stock to IAC Inc. as part of a reimbursement agreement, valued at approximately $2 million. This issuance was conducted as a private transaction exempt from public offering requirements. The company has also shed its dual-class voting structure, a move expected to provide a more compelling equity currency for growth initiatives. Both Angi and IAC have reaffirmed their full-year guidance for 2025, indicating a positive outlook for the future.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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