Deutsche Bank Sees Mixed Factors For Angie's List

In a report published Thursday, Deutsche Bank analyst Lloyd Walmsley reiterated a Hold rating and $7.00 price target on

. In the report, Deutsche Bank noted, "ANGI reported better-than-expected 4Q results and 2015 guidance, and some trends appear to be showing signs of stabilization. Lowering commerce take rates may help retain SP revenue, though we are not modeling a sustained improvement in new originations. This model also gives up some transactional upside, and represents yet another strategy shift with high execution risk. Meanwhile competition continues to increase in the space and with more debt, the window for fixing things continues to narrow. We hold out hope ANGI can productize a transactional business, but it is clearly a challenge. Maintain Hold on balanced risk/reward." Angie's List closed on Wednesday at $7.80.