IAC shares climb after Goldman upgrade; analyst sees recovering economy boosting revenue
By APWednesday, January 13, 2010
IAC shares climb after Goldman upgrade
NEW YORK — Shares of IAC/InterActiveCorp. rose Wednesday as Goldman Sachs raised its rating on the company’s shares, citing improving revenue for its Internet search business, the potential for asset sales and a low share price.
IAC runs Match.com, Ask.com and other Web sites. Its stock rose 67 cents, or 3.2 percent, to $21.65 in afternoon trading after rising to a 52-week high of $22.28 earlier in the session.
Goldman analyst Ingrid Chung upgraded the stock to “Buy” from “Neutral” in a client note and raised her price target for the shares to $28 from $20.
Chung said she expects a recovering economy to help boost revenue at IAC’s search business and ServiceMagic, a site that helps consumers find home improvement contractors.
She also said Ask.com could be an acquisition target. Chung pointed out that Microsoft Corp. is a logical suitor as it tries to catch up with search rival Google Inc.
Chung said IAC’s stock has trended below its peers in the online media business. Shares have been relatively flat over the past four months.
