Market Overview

ANGI Homeservices Has Room To Grow In $700B Market, BMO Capital Markets Says In Bullish Initiation

ANGI Homeservices Has Room To Grow In $700B Market, BMO Capital Markets Says In Bullish Initiation

ANGI Homeservices Inc. (NASDAQ: ANGI), formed in the merger of IAC's global HomeAdvisor business and Angie's List, is a clear market leader in the home services space, according to BMO Capital Markets.

The Analyst

Analyst Daniel Salmon initiated coverage on the shares of ANGI Homeservices with an Outperform rating and $16 price target.

The Thesis

ANGI Homeservices, with a 5.5-percent market share, has ample room to grow in a $700-billion total addressable market, Salmon said in a Tuesday note. (See the analyst's track record here.) 

"We believe the marketplace will continue to shift online as millennials become homeowners and, on the supply side, as service professionals adopt the reach, trackable return and tailored customer management solutions inherent in an online marketplace," the analyst said. 

BMO expects ANGI to reach its adjusted EBITDA target of $270 million in 2018 and $409 million in 2019, thanks to identified cost synergies and strong revenue growth opportunities.

"We believe a 20-25-percent adjusted EBITDA growth CAGR is reasonable into the early part of the next decade," Salmon said.

Due to ANGI Homeservices monetizing Angie's List traffic on Jan. 1, 2018 through HomeAdvisor, the analyst estimates Marketplace Service Requests will begin to ramp in the second half of 2018. Marketplace service professionals will also begin ramping longer-term, he said. 

The Price Action

ANGI shares have added more than 100 percent since the announcement of the merger agreement between Angie's List and IAC's HomeAdvisor unit. ANGI shares were up 1.91 percent at $13.31 at the time of publication Tuesday. 

Related Links:

At This Point, IAC Offer Is A Good Outcome For Angie's List Holders

Comparing The Competition In Home Services: HomeAdvisor, Amazon Home Services And Angie's List

Latest Ratings for ANGI

Oct 2020Credit SuisseInitiates Coverage OnOutperform
Oct 2020NeedhamMaintainsBuy
Sep 2020Piper SandlerInitiates Coverage OnNeutral

View More Analyst Ratings for ANGI
View the Latest Analyst Ratings


Related Articles (ANGI)

View Comments and Join the Discussion!

Posted-In: BMO Capital Markets contractors Daniel Salmon home servicesAnalyst Color Price Target Initiation Analyst Ratings Best of Benzinga

Latest Ratings

View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at