UPDATE: Bank of America Downgrades Angie's List to Neutral, Lowers PT as Thesis is Not Playing Out

In a report published Thursday, Bank of America analyst Paul Bieber downgraded the rating on

from Buy to Neutral, and lowered the price target from $16.00 to $12.00. In the report, Bank of America noted, “While we continue to like the ANGI LT opportunity, we are lowering our rating to Neutral as our thesis about improving sales force productivity and diminishing member ARPU declines is not playing out as expected. In addition, ANGI will significantly reduce its marketing spend in 3Q to improve 2H profitability, and we are cautious as to whether ANGI can maintain healthy rev. growth in the midst of significantly lower marketing spend. ANGI is also facing headwinds in its Big Deal eCommerce business, which is likely to pressure Service Provider rev. growth in 2H. We are lowering our PO to $12 based on our DCF analysis. We think revenue deceleration will need to stabilize for sentiment to improve.” Angie's List closed on Wednesday at $10.17.