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IAC/Interactive Corp has no near-term catalysts, limited scope - UBS

Published 02/12/2022, 20:50
© Reuters.
IAC
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By Sam Boughedda.

IAC/InterActiveCorp (NASDAQ:IAC) was initiated with a Sell rating and $46 price target by UBS analysts on Friday based on no near-term catalysts.

"IAC is a holding company; its shares reflect the value of its stakes in ANGI (19% of IAC's share price, 38% of 3Q22 revs) and MGM (48% of shares, not consolidated) as well as cash (29%)," explained the analysts.

They explained that the negative thesis is based on below-consensus F2023 expectations for ANGI, a 3-year delay to DDM Digital EBITDA target of $450M and limited scope to unlock value via spin-offs NT.

In addition, the firm expects the Street to reduce DDM expectations again when IAC provides its 2023 outlook at 4Q earnings.

"For 2023, we est revenue of ~$5.2B, modestly below the Street, with EBITDA at $333M vs Street at $349M. For 2024, we expect revenue of $5.5B, ~5% below the Street at $5.7B, and EBITDA of ~$423M in 2024, about 24% below the Street at $554M," they said.

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