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In a report published Thursday, Barrington Research analysts maintained an Outperform rating on Angie's List Inc (NASDAQ: ANGI), with a price target of $10, after the company reported its 1Q15 results.

Angie's List had announced the departure of its CEO William Oesterle last week, while raising its 2015 profitability guidance. Its 1Q15 profitability was significantly ahead of expectations. The analysts believe that a strategic buyer would emerge before a new CEO is named. Among the probable buyers are Alibaba Group Holding Ltd (NYSE: BABA), eBay Inc (NASDAQ: EBAY), Google Inc (NASDAQ: GOOGL) and Yelp Inc (NYSE: YELP).

In the report Barrington Research noted, "The company is clearly making progress on its marketplace transition and remedying operational issues. Top‐line strength was again attributed to improved sales force productivity and marketing efficiency as well as ecommerce."

The company's revenues climbed 15 percent to $83.5 million, ahead of the $82.8 million estimate, but marginally below the Street's $84.8 million. SP revenue was $66.2 million (representing 2 percent growth), and membership was $17.3 million (marking a 5 percent declining). Angie's List maintained its 2015 guidance at $357‐363 million, representing 13‐15 percent growth.

Angie's List reported an improvement in cost per member acquisition (CPA) to $71 from $82 on account of a more efficient marketing spend, the move to ecommerce, and the Allstate relationship buying ads.

"We like the upside potential from recently launched exclusive product discount partnerships with Shaw Industries (carpets), Benjamin Moore (paint), and onDeck (lending)," the analysts added.

Latest Ratings for ANGI

Aug 2017PiperJaffrayInitiates Coverage OnOverweight
May 2017Loop CapitalDowngradesBuyHold
Feb 2017Roth CapitalDowngradesNeutralSell

View More Analyst Ratings for ANGI
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Posted-In: Barrington ResearchAnalyst Color Reiteration Analyst Ratings


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