UPDATE: Benchmark Raises Target to $50 on InterActiveCorp

Benchmark reiterates its Hold rating on InterActiveCorp IACI on strong search volume that drove 4Q11 results. Benchmark notes, "Search revenue again accelerated on a y/y basis to 35% growth. IAC has increased marketing to drive toolbar distribution, as well as launch new proprietary toolbars and add distribution partners. These efforts are driving increased volume but increased marketing could hinder margins. Search OIBA increased 75% y/y, with the margin up roughly 4 percentage points y/y to 18%. However, Search margin declined 70 bp sequentially. IAC is managing the Search business for y/y OIBA growth, not margin. We anticipated elevated marketing levels will continue. " IACI closed at $45.78 a share yesterday.