IAC/InteractiveCorp., the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst John Blackledge from TD Cowen maintained a Buy rating on the stock and has a $62.00 price target.
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John Blackledge has given his Buy rating due to a combination of factors that highlight IAC/InteractiveCorp.’s potential for growth and financial stability. Despite an anticipated decline in total revenue by 4.5% year-over-year for the second quarter of 2025, the company’s digital segment is expected to grow significantly. The Dotdash Meredith Digital Media (DDM) segment is projected to see an 8% increase in revenue, driven by stable traffic, monetization growth, and strong consumer spending on eCommerce. Additionally, the company’s partnership with OpenAI is expected to continue benefiting its licensing revenue.
Moreover, the valuation of IAC remains attractive, with an enterprise value (EV) to EBITDA ratio of 2.7x based on 2026 estimates. The company’s financial position is bolstered by a substantial cash reserve of $1.12 billion against $1.45 billion in long-term debt, alongside a share repurchase authorization of 9.2 million shares. These factors, combined with a promising outlook for the DDM segment and a stable financial structure, underpin Blackledge’s Buy rating for IAC.
According to TipRanks, Blackledge is a 5-star analyst with an average return of 13.8% and a 60.08% success rate. Blackledge covers the Communication Services sector, focusing on stocks such as Netflix, Alphabet Class C, and IAC/InteractiveCorp..