IAC/InterActiveCorp IAC 1.85% may have more room to the upside. Jefferies has upgraded the internet stock to Buy, and analyst Brian Fitzgerald said investors aren’t fully appreciating the value of the company’s key brands.
Strength In Match, HomeAdvisor Bolsters IAC
According to Fitzgerald, the strong growth in Match Group Inc MTCH 3.73% and HomeAdvisor suggests IAC stock has room to run.
Jefferies recently initiated coverage of Match at Buy, and Fitzgerald sees Tinder as a particular bright spot.
The Tinder Element
“We believe that Match is positioned favorably given the strength of Tinder and positive industry tailwinds within online dating,” Fitzgerald explained.
Jefferies is projecting paid member count growth of 74 percent for Tinder in 2017. The firm is also projecting overall PMC growth of 16 percent for Match Group as a whole, slightly ahead of the company’s guidance of 15 percent growth.
In addition to Match Group, Jefferies projects 35 percent revenue growth from HomeAdvisor this year after the company delivered 38 percent revenue growth in 2016. Fitzgerald also noted that Vimeo’s new direct-to-consumer offering could supply additional revenue upside for IAC this year.
Looking ahead, Fitzgerald expects…
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