On Tuesday, JMP Securities initiated coverage on ANGI HomeServices (NASDAQ: ANGI) with a Market Outperform rating and a set price target of $3.25. The firm highlighted ANGI's leading role in the home maintenance and renovation industry and its potential for market share growth starting in 2025. This optimistic outlook is based on the company's efforts to improve monetization and an expected increase in service requests.
ANGI HomeServices is poised to capitalize on significant industry trends, including the aging of homes and the economic factors that encourage homeowners to renovate rather than relocate. These factors, combined with ANGI's expanding international presence, contribute to the firm's positive assessment. In 2023, ANGI generated approximately $116 million in international revenue, which accounted for 8.5% of its total revenue.
The company's strong foothold in the United States is underscored by the fact that nearly 70% of its web traffic originates from its U.S.-based brands. This domestic dominance is a key component of ANGI's overall business strategy and is expected to support its growth trajectory.
JMP Securities' outlook for ANGI HomeServices is further bolstered by the company's ongoing international expansion efforts. As ANGI continues to extend its reach beyond the U.S. market, the firm anticipates additional revenue streams and market penetration.
The Market Outperform rating indicates that JMP Securities expects ANGI HomeServices' stock to perform better than the average return of the stocks covered by the firm over the next 12 to 18 months. The price target of $3.25 reflects the firm's confidence in the company's future performance and growth prospects.
In other recent news, KeyBanc Capital Markets has increased its price target for ANGI HomeServices, highlighting the firm's confidence in the company's turnaround efforts under the new CEO, Jeff Kip. ANGI's strategic partnership with OpenAI, which includes co-developing the D/Cipher ad solution, was also noted. Despite expected revenue declines, the company maintains its adjusted EBITDA forecast for the year at $120 million to $150 million.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.