ANGI Homeservices

Feb 15, 2023

jetcityimage/iStock Editorial via Getty Images Angi Homeservices (NASDAQ: ANGI ) shares rose nearly 6% in premarket trading on Wednesday as UBS upgraded the home service review company. Analyst Kunal Madhukar raised the firm's rating on Angi ( ANGI ) shares to neutral from sell and boosted the per-share price target to $2.75 from $2, noting the company is going "back to basics" as it is focusing on directory-style listings for advertisements and leads, along with a focus on smaller, simpler and repeatable jobs that lead to better margins and higher free cash flow. "The Co also reset expectations lower for 2023, which likely makes it easier for them to start on a cadence of beats and raises as they turn around the business," Madhukar wrote in a note to clients. Madhukar added that shares could remain range-bound, however, until Angi ( ANGI ) gives more visibility into its long-term growth and makes improvements in margins. Madhukar also upgraded IAC (NASDAQ: IAC ), pointing out that Angi ( ANGI ) accounts for roughly 22% of IAC ( IAC ) shares and there has been an expansion in multiples for digital advertising names since the start of the year. Madhukar added that car-sharing company Turo is worth roughly $2.50 per IAC ( IAC ) share and an eventual initial public offering could help "unlock" somewhere between $7.50 and $11.50 in value per IAC ( IAC ) share. IAC ( IAC ) shares were down around 1% in premarket trading.