Citizens JMP analyst Matthew Condon has adjusted the price target for IAC (IAC, Financial), lowering it from $64 to $47. Despite this reduction, Condon maintains an Outperform rating on the stock following his assumption of coverage. The analyst highlights several undervalued opportunities within IAC, particularly in its divisions Dotdash Meredith and Care.com, which he believes could significantly impact the company's results moving forward.
Condon emphasizes IAC's proven ability to successfully nurture businesses and generate shareholder value as a foundational aspect of its investment appeal. Regularly identifying and developing promising ventures has been pivotal for IAC, and this strategy continues to be a central part of the firm's positive outlook on the stock.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 12 analysts, the average target price for IAC Inc (IAC, Financial) is $52.92 with a high estimate of $64.00 and a low estimate of $38.00. The average target implies an upside of 44.19% from the current price of $36.70. More detailed estimate data can be found on the IAC Inc (IAC) Forecast page.
Based on the consensus recommendation from 14 brokerage firms, IAC Inc's (IAC, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for IAC Inc (IAC, Financial) in one year is $25.76, suggesting a downside of 29.81% from the current price of $36.7. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the IAC Inc (IAC) Summary page.
IAC Key Business Developments
Release Date: May 06, 2025
- Digital Revenue Growth (DDM): Increased by 7% in Q1.
- EBITDA Growth (DDM): Increased by 46%, excluding a one-time lease gain.
- Lease Termination Gain: $36 million book gain from terminating a long-term lease for $43 million in cash payments.
- Share Repurchase: Repurchased 4.5 million shares and increased authorization by 10 million shares.
- Cash at IAC: $900 million.
- Net Operating Losses (NOLs): $800 million available to offset taxable gains.
- Daily Beast Revenue Growth: Increased by 72% while achieving profitability.
- Settlement Contribution: $200,000 beyond insurance coverage for match separation litigation.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- IAC Inc (IAC, Financial) completed the full spin-off of Angi, marking the creation of its 10th independent company.
- Dotdash Meredith (DDM) grew digital revenue by 7% and increased EBITDA by 46%, excluding a one-time lease gain.
- The company repurchased 4.5 million shares and increased its share repurchase authorization by 10 million shares.
- The Daily Beast achieved a 72% revenue growth while reaching profitability.
- IAC Inc (IAC) reaffirmed its full-year 2025 adjusted EBITDA guidance across all its businesses.
Negative Points
- Despite progress, IAC Inc (IAC) shares are trading below the value of its 23% stake in MGM and $900 million in cash.
- Programmatic pricing has softened, running flat year-over-year after being up for much of the previous year.
- The macroeconomic outlook remains uncertain, with potential impacts on consumer spending and advertiser demand.
- Care.com has faced challenges with product deficiencies and inefficiencies in marketing spend.
- The programmatic market has seen a decline in pricing due to factors like the exit of major advertisers.
