ANGI - Angi pops on UBS upgrade firm becomes 'incrementally more positive' on shares

• 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.
• ANGI ( ANGI ) reported fourth-quarter results earlier this week that missed Wall Street expectations .

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