Benchmark Reiterates Buy, $15 PT on InfoSpace
Benchmark reiterates its Buy rating and $15 price target on InfoSpace (NASDAQ: INSP) as it believes pullback on shares was due to alarmist report riddled with inaccuracies.
Benchmark notes, "There is no meaningful accounting issue at InfoSpace. InfoSpace has changed auditors from Deloitte & Touche (DT) to Ernst & Young for 2012 through a competitive process. This is not a “red flag” in our opinion, but an efficiency initiative. There were no disagreements with DT. The broker's report says DT expressed an adverse opinion and associates it with the recent TaxACT acquisition. This is incorrect. The adverse opinion was from the $8 million purchase of “Make The Web Better” in 2010; a deal that later resulted in a noncash restatement. The TaxACT acquisition was not subject to audit since it closed after the fiscal year."
INSP closed at $12.12 a share yesterday.
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