UPDATE: Bank of America Downgrades Angie's List as Street EBITDA Estimates are Too High

In a report published Wednesday, Bank of America analyst Paul Bieber downgraded the rating on Angie's List ANGI from Buy to Neutral, but reiterated the $22.00 price target. In the report, Bank of America noted, “While we continue to like the Angie's List long term opportunity, we are downgrading Angie's List to Neutral from Buy as: 1) we think 2014/2015 Street EBITDA estimates are too high; 2) shares are up 24% YTD vs. NASD down 0.3% and we expect in-line 4Q results; and 3) shares have limited valuation support in volatile markets given high operating losses. We still think sales force productivity will likely improve in 1H14 (see Bull vs. Bear theses on pg 5). However, we think Street EBITDA estimates may need to come down for sentiment to improve (41% of float short).” Angie's List closed on Tuesday at $18.12.