Needham & Company Cuts Price Target on IAC/InterActiveCorp (IAC) Following 4Q

Needham & Company maintained a Buy rating on IAC/InterActiveCorp (NASDAQ: IAC), and cut the price target to $62.00 (from $78.00), following the company's 4Q earnings report. Publishing revenue for 4Q15 was $180M, down 13% y/y, but slightly above consensus of $176M. Needham expects FY16 Publishing and Applications revenue to decline and the revenue growth of the Match Group to be slightly slower than expected.

Analyst Kerry Rice commented, "We expect FY16 Publishing and Applications revenue to decline and the revenue growth of the Match Group to be slightly slower than expected. As a result, we also estimate lower overall EBITDA for FY16. Despite lower estimates for these segments, our sum-of-the-parts analysis still indicates that shares are undervalued, even after also reducing our EV/EBITDA multiple assumptions for the Match Group. The new Google contract creates headwinds for Publishing and Applications, as well as the secular shifts toward “opt-in”, native applications and mobile. While we expect strong Match Group revenue growth, mobile monetization, conversion rate, technology replatforming, organizational restructuring, and a strong dollar should overshadow strong subscriber growth. Positively, HomeAdvisor revenue and EBITDA should exhibit strong FY16 growth."

For an analyst ratings summary and ratings history on IAC/InterActiveCorp click here. For more ratings news on IAC/InterActiveCorp click here.

Shares of IAC/InterActiveCorp closed at $45.78 yesterday.

You May Also Be Interested In

• FedEx (FDX) PT Lowered to $424 at Bernstein SocGen Group
• Macy's (M) PT Raised to $25 at TD Cowen
• Curbline Properties Corp (CURB) PT Raised to $32 at KeyBanc