Angie's List shares rise following upgrade
Angie's List upgraded by Caris analyst to 'Buy,' shares jump
Shares of Angie's List Inc. jumped Friday after a B. Riley Caris analyst upgraded the company's stock, citing its positioning and opportunity.
THE SPARK: Analyst Sameet Sinha upgraded Angie's List to "Buy" from "Sell" and more than doubled his price target, moving it from $7 to $18.
THE BIG PICTURE: Angie's List is a subscriber service that provides online access to business ratings and reviews. It went public in 2011. The company posted a wider loss in its most recent quarter as it invested in advertising and attracted hundreds of thousands of new subscribers, which boosted its revenue by 75 percent.
THE ANALYSIS: Sinha said he has a new appreciation of the company's positioning and opportunity, as well as a better understanding of its improving economics.
"We believe (Angie's List) offers investors exposure to the fast-growing local online advertising market with a high growth, high visibility model," the analyst wrote in a research note.
He said the company appears to be on the path to profitability and that its growth and margin potential is underappreciated.
SHARE ACTION: Angie's List shares rose 39 cents, or 3.2 percent, to $12.50 in afternoon trading. The stock slid through spring and summer and has yet to recover. It has traded between $8.94 and $19.82 over the past 52 weeks.
