Canaccord Initiates Buy, $55 Target on IAC/InterActiveCorp

Canaccord initiates coverage of IAC/InterActiveCorp IACI with a Buy rating and a target price of $55 per share on steady growth and returns on capital. Canaccord says, “Search segment growth should remain strong as the Mindspark Toolbar business grows in the mix to offset slower-growth Ask.com. The Match (online dating) segment should see continued growth. Margins will be compressed in the near term from the Meetic acquisition, but should expand significantly in H2/12 and 2013.” IACI closed at $43.41 per share on Tuesday.