UPDATE: Deutsche Bank Initiates Coverage on Angie's List with Hold Rating, $12 PT

In a report published Friday, Deutsche Bank initiated coverage on Angie's List (NASDAQ: ANGI) with a Hold rating and $12.00 price target.

Deutsche Bank noted, “ANGI is one of the most interesting stories in small cap internet, as its model is proven and defensible, it earns strong unit economics, but its rapid growth translates to large losses. There are few companies in our coverage universe that can increase their revenue by 10x-15x, and Angie's List is one of them. While we like the business model more than some of its local peers, its valuation vs. the sector is rich and almost not comparable given the heavy losses to date. We would get more aggressive with our recommendation if we could see more clearly the path and timing to FCF positive, and if we were assured that ANGI can get to FCF without raising more equity.”

Angie's List closed on Thursday at $12.02.

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