On Friday, KeyBanc Capital Markets adjusted its outlook on Angi Inc. (NASDAQ:ANGI), reducing the price target to $3.25 from the previous $4.00, while maintaining an Overweight rating on the stock. The revision reflects a valuation that aligns more closely with the current multiples of Angi's peers.
The decision to lower the price target is influenced by several factors. Angi's revenue has experienced fluctuations as the company navigates through changes in its business model and the broader economic environment. Despite these challenges, there are signs of progress in the company's profitability. KeyBanc anticipates that Angi's EBITDA margin will steady between 10% and 12% throughout the year.
KeyBanc's analysis suggests that Angi is on a path to improved profitability. This outlook is based on the company's performance amidst the transitions it has been undergoing. The firm's expectation for Angi's EBITDA margin to stabilize is a positive sign for the company's financial health.
Jeff Kip's recent appointment as CEO of Angi has also been a point of interest for KeyBanc. The firm is keen to observe how Kip will apply his experience from Angi International to the larger Angi organization. His leadership is expected to play a crucial role in steering the company towards its profitability goals.
In summary, while the price target for Angi has been lowered, KeyBanc continues to see the stock favorably. The firm's Overweight rating indicates a belief that Angi's stock has the potential to outperform the average total return of the stocks in the analyst's coverage universe over the next 12 to 18 months. The lowered price target, however, takes into account the need to adjust expectations in line with the performance of Angi's market peers.
InvestingPro Insights
As Angi Inc. (NASDAQ:ANGI) adapts to market dynamics and the recent changes in its business model, the latest data from InvestingPro provides additional context to KeyBanc Capital Markets' assessment. With a market cap of $1.27 billion and a significant return over the last week of 12.44%, Angi's stock price movements have been notably volatile. This volatility is exemplified by a six-month price total return of 46.11%, reflecting a large price uptick in that period.
InvestingPro Tips highlight that Angi is expected to see net income growth this year, despite not being profitable over the last twelve months. Analysts predict the company will be profitable this year, which aligns with KeyBanc's outlook on the company's path to improved profitability. Moreover, Angi's liquid assets exceed its short-term obligations, and the company operates with a moderate level of debt, suggesting a solid financial footing for the anticipated growth.
For readers looking to delve deeper into Angi's financials and future prospects, InvestingPro offers additional tips and a comprehensive analysis. Discover more about Angi's potential and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With 8 more InvestingPro Tips available, investors can gain a richer understanding of Angi's position and trajectory in the current market.
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