Benchmark Continues To See IAC As Core Long-Term Holding

IAC/InterActiveCorp IAC shares are moving higher after the company posted a fourth-quarter earnings beat last week driven by strong results from Match Group Inc MTCH.

The Analyst 

Benchmark analyst Daniel Kurnos reiterated a Buy rating on IAC/InterActive with a $260 price target.

The Thesis

IAC/InterActiveCorp’s earnings beat was headlined by upside to every core vertical, despite some concerns surrounding ANGI Homeservices Inc ANGI, Kurnos said in a Monday note.

The analyst said he continues to see IAC as a core long-term holding.

“We continue to view ANGI as on the same trajectory as Match, and although we share some of the same initial concerns around home diversification, we still see a lengthy runway for the core marketplaces business." 

IAC's quarter was also driven by 28-percent year-over-year growth at Vimeo and 32-percent growth at Dotdash. Kurnos said he expects ANGI to record 25-percent revenue growth in FY19.

While Benchmarke reduced its FY19 revenue target to reflect recent asset sales, the analyst said he see significant opportunity for share gains from the largest players in each vertical.

Yelp Inc YELP shares were also moving higher on Monday, as traders circulate rumors that IAC is interested in buying the company.

Price Action

IAC/InterActiveCorp shares were up 2.12 percent at $220.53 at the time of publication Monday. 

Related Links:

Tinder Lights A Fire Under Match Group, Now Accounts For Half Of Paid Subscribers

Tinder Transformed Online Dating, But High Expectations Are Priced In, Says Wells Fargo

Photo courtesy of Tinder.