UPDATE: Topeka Capital Markets Reiterates IAC/InterActiveCorp at Buy on Capital Return Outlook
Topeka Capital Markets maintained IAC/InterActiveCorp (NASDAQ: IACI) at a Buy rating with a $66 price target.
Topeka Capital Markets noted, "We are updating our model to reflect the recent $500mm debt offering. While IAC did not follow the path of other companies such as Expedia (EXPE:-$59.36:NR) and issue a special dividend ahead of the prospects of higher tax rates in 2013, we believe that the likely use of cash could be for more aggressive share repurchase. We have argued in the past that there is an opportunity to utilize the under-levered balance sheet to continue to shrink the equity base. With this debt raise, we believe management is heading down that path."
IAC/InterActiveCorp closed at $46.23 on Friday.
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Tags: Topeka Capital Markets