Wells Fargo Upgrades IAC Interactive (IACI)
Wells Fargo reported on Thursday that they have upgraded internet company, IAC Interactive Corp.( IACI ) to "Outperform"
The firm reported that they have upgraded the company from "Market Perform" to "Outperform," and have given the company a price target range of $53 to $56. This range suggests up to a 21% increase from the stock's current price of $44.15.
The firm has maintained its fourth quarter earnings estimate of 77 cents per share. Non-GAAP 2013 earnings were reduced from $3.90 per share to $3.84 per share.
An analyst from the firm commented, "we view recent share price weakness as an attractive entry point for investors as we believe shares currently discount threats of mobile migration and recent traffic trends within IAC's portfolio. We are upgrading the shares of IACI to Outperform from Market Perform. In this report we examine the operating unit that we believe is the primary focus of mobile-related risk (Search/Apps). We also examine traffic source trends for key Ask.com. Based on user data and device ownership demo profiles, we believe Ask users are generally mobile laggards, and therefore not leading drivers of mobile search adoption. We do see risk associated with toolbars, but again believe that audience dynamics likely insulate the business from leading edge mobile trends."
IAC Interactive shares were up $1.10, or 2.49% during premarket trading Thursday. The stock is up 5.12% YTD.
The Bottom Line
Shares of IAC Interactive Corp. ( IACI ) have a 2.17% dividend yield, based on last night's closing stock price of $44.15. The stock has technical support in the $40-$42 price area. If the shares can firm up, we see overhead resistance around the $48-$50 price levels.
IAC Interactive Corp.( IACI ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.