UPDATE: Deutsche Bank Reiterates on IAC/InterActiveCorp on Further Upside Potential
In a report published Friday, Deutsche Bank analyst Greg Poole reiterated a Buy rating on IAC/InterActiveCorp (NASDAQ: IACI), and raised the price target from $55.00 to $81.00.
In the report, Deutsche Bank noted, “Historically, the winning alpha generating strategy for Barry Diller spins is to buy shares upon announcement (or expectation thereof) as two year returns range from +18% to +251%, and we see the lower end of that range as the possible conservative case following yesterday's announcement of a major realignment. Value creation for shareholders comes from deeper analysis “under the hood” of the various assets, and these spins are typically timed ahead of a strong run of fundamentals. Our original thesis around IAC (and other DB preferred value-internets) was always about unlocking shareholder value, and the catalyst appears to be underway. We see further upside from here to our new $81 price target, based on 12x Personals EBITDA, 4x Search, 5x Vimeo revenue and 1x Media/Other.”
IAC/InterActiveCorp closed on Thursday at $68.49.
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