John Blackledge, an analyst from TD Cowen, maintained the Buy rating on IAC/InteractiveCorp.. The associated price target was lowered to $60.00.
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John Blackledge has given his Buy rating due to a combination of factors including IAC/InteractiveCorp.’s stable performance in its digital revenue segment and attractive valuation metrics. Despite a slight decline in the overall revenue for the second quarter, the company’s digital revenue from People Inc. exceeded expectations, and management anticipates continued growth in this area. The focus on increasing traffic from non-Google sources and the growth in off-platform views are seen as positive strategies to counteract the decline in Google Search-driven traffic.
Furthermore, the valuation of IAC remains appealing, with a low enterprise value to EBITDA ratio, and the company maintains a strong cash position. The management’s guidance for future digital revenue growth and the ongoing share repurchase program also contribute to a positive outlook. These factors combined support the Buy rating, as they suggest potential for future growth and value appreciation.
According to TipRanks, Blackledge is a 5-star analyst with an average return of 13.3% and a 59.47% success rate. Blackledge covers the Communication Services sector, focusing on stocks such as IAC/InteractiveCorp., Netflix, and Alphabet Class C.