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Investing.com - KeyBanc has reduced its price target on IAC/InterActiveCorp (NASDAQ:IAC) to $41.00 from $45.00 while maintaining an Overweight rating on the stock. The new target still represents significant upside from IAC’s current price of $32.22, which is trading near its 52-week low of $31.30, according to InvestingPro data.
The firm cited lower EBITDA growth projections as the primary reason for the target reduction, particularly noting challenges with IAC’s People business managing increased off-platform viewing. Despite these challenges, IAC maintains a current EV/EBITDA ratio of just 0.75, suggesting the stock is trading at a low revenue valuation multiple relative to its earnings potential.
KeyBanc has lowered its EBITDA estimates for IAC by 11% for 2025, 8% for 2026, and 7% for 2027, reflecting expectations that more traffic will shift to off-platform channels which typically carry lower margins.
The revised price target of $41 represents a multiple of 10.1x the firm’s 2027 estimated EV/EBITDA ratio, with the adjustment also reflecting reduced Care.com performance assumptions.
The new valuation also incorporates a lower valuation for IAC’s MGM stake compared to KeyBanc’s previous model update.
In other recent news, Vimeo, Inc. announced it will be acquired by Bending Spoons in an all-cash deal valued at approximately $1.38 billion. This agreement will see Vimeo shareholders receiving $7.85 per share, which is a 91% premium over the company’s 60-day volume-weighted average share price as of September 9, 2025. Meanwhile, Match Group has rolled out a new facial verification feature called Face Check on its Tinder app in the U.S., initially mandatory for new users in seven countries and California, with plans for further expansion.
Turning to IAC/InterActiveCorp, Citizens has reiterated its Market Outperform rating with a $47 price target, pointing to potential growth drivers like D/Cipher+’s role in consolidating advertising demand. Benchmark has also maintained a Buy rating on IAC, setting a $60 price target, while Jefferies has adjusted its price target to $45 from $51, maintaining a Buy rating. Jefferies noted IAC’s second-quarter results met general expectations but did not meet higher investor expectations. These developments suggest various strategic directions and analyst expectations for IAC’s future performance.
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