IAC/InteractiveCorp., the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Daniel Kurnos from Benchmark Co. maintained a Buy rating on the stock and has a $60.00 price target.
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Daniel Kurnos has given his Buy rating due to a combination of factors that suggest a favorable risk/reward profile for IAC/InteractiveCorp. Despite recent challenges, such as the compression of margins in the People segment and the temporary halt of stock buybacks, Kurnos sees potential in the company’s strategic initiatives aimed at growth and transformation. The company’s enterprise value, when adjusted for its holdings in MGM and Turo, appears undervalued, making it an attractive investment opportunity.
Furthermore, while the recent quarterly revenue missed expectations, the EBITDA performance was better than anticipated, indicating resilience in the company’s operations. Kurnos believes that the digital growth within the People segment, alongside investments in new technologies like D/Cipher+, will contribute to future profitability. The expectation of a resumption in stock repurchases and the current trading valuation further support the Buy rating, as they present an opportunity for upward movement in the stock price.
Kurnos covers the Communication Services sector, focusing on stocks such as Roku, Angi, and Paramount Global. According to TipRanks, Kurnos has an average return of 6.5% and a 50.84% success rate on recommended stocks.
In another report released today, KeyBanc also maintained a Buy rating on the stock with a $45.00 price target.