UPDATE: Bank of America Reiterates on Angie's List on Increased Investment

In a report published Thursday, Bank of America analyst Paul Bieber reiterated a Neutral rating on

, but lowered the price target from $22.00 to $19.00. In the report, Bank of America noted, “AL reported rev./GAAP EPS of $68.8mn/$$0.05 vs. the Street at $68.5mn/$0.15. EPS was negatively impacted by a legal accrual ($0.07), and EBITDA of $9.9mn was essentially in-line with our $9.6mn est. Importantly, AL indicated that 2014 op. margin should improve by 1,000bps y/y, which implies $2.9mn of EBITDA in 2014 vs. the Street at $21.1mn. AL plans to invest in 2014 in: 1) sales force expansion; 2) eCommerce marketplace; 3) diversifying its marketing spend; and 4) testing tiered membership plans. Despite positive cohort data and material progress toward profitability in 2013, 2014 is looking like a transition year with increased focus on eCommerce and sales force productivity.” Angie's List closed on Wednesday at $17.10.