This is a top Jefferies internet pick with solid upside to the target price. IAC/InterActiveCorp (NASDAQ: IAC) operates a diverse collection online media assets ranging from search to personals with, Ask.com search and Match.com personals driving the bulk of its revenue and profits. The company generates revenue from a combination of advertising (both search and display), subscriptions and transactions.
The 2017 merger between Angie’s List and IAC/InterActiveCorp Home Adviser was well received, as the company was combined with HomeAdvisor, IAC’s home services marketplace. The Jefferies analysts are very positive on the company and noted this in a report:
We explored the potential strategic next steps for IAC. While a Match.com distribution could potentially narrow the sum-of-the-parts discount, we point out that IAC shares have underperformed during past spin announcements. That said, we do believe a spin followed by M&A is the most likely scenario. While we remain positive on the IAC thesis long-term, we acknowledge that the stock may trade sideways in the near-term until more clarity emerges.
The $300 Jefferies price target compares with the $299.80 consensus target price. The shares ended last week trading at $230.95 apiece.
The off-the-radar tech play makes sense for aggressive accounts. LivePerson Inc. (NASDAQ: LPSN) engages in the provision of mobile and online messaging solutions. It operates through two segments.
While the Business segment enables brands to leverage intelligence engine to connect with consumers through an integrated suite of mobile and online business messaging technologies, the Consumer segment involves in facilitating online transactions between independent service providers and individual consumers seeking information and knowledge for a fee via mobile and online messaging.
The analysts noted this in the report.
We visited the company headquarters last week and met with management. While first half 2019 revenue growth was 15%, we expect it to accelerate into year-end and 2020, and highlight that the company expects to have ~100 sales reps by year-end. In addition, while Live Person has made strong inroads in the conversational part of the market, we continue to see significant oppty in driving m-commerce through messaging channels.
Jefferies has set its price objective at $45. The posted consensus price objective is $41.79, and the stock was last seen changing hands at $38.17 a share.
These four stocks all offer investors strength in their specific industries, as well as the ability to avoid high-flying disasters. All these stocks are suitable for growth accounts with some degree of risk tolerance.