IAC's analyst consensus price target saw a moderate decrease, moving from approximately $48.69 to $48.38. Analysts weighed recent mixed performance, a cautious outlook on M&A, and evolving prospects for share buybacks in their reassessment.

Analyst Commentary

Analyst assessments reflect a mix of optimism regarding IAC’s long-term positioning and ongoing caution around execution risk, timelines for value creation, and some recent performance trends.

• Bullish analysts see a favorable risk/reward profile given the current trading valuation and the potential for a resumption of share repurchases.
• There is optimism for upside trades now that the market has moved past recent quarterly earnings visibility issues.
• Steady progress on asset monetization strategies, such as possible sales related to MGM or Turo, could unlock shareholder value over time.
• Incremental growth opportunities exist within key properties, with particular attention on accelerating market share gains at platforms like Care.com.

• Cautious analysts highlight a longer timeline for realizing value from buybacks, asset sales, or M&A. This has led to higher discount rates being applied in valuations.
• Some remain skeptical about the company’s acquisition execution, especially after recent operational data points put pressure on sentiment.
• Lingering concerns exist regarding sustained traffic declines in certain properties, including a notable decrease in Core Sessions sourced from search partners year over year.
• Uncertainty persists around the consistency and magnitude of future buybacks to support the stock, particularly as capital is weighed against larger strategic initiatives.

What's in the News

• IAC is actively seeking merger and acquisition opportunities and is hoping for increased deal activity later in the year. (Key Developments)
• The company completed a $200 million share buyback in the previous quarter. (Key Developments)
• Executives indicated that capital allocation was muted recently. However, optimism remains for improved economic and trade visibility to spur more transactions. (Key Developments)

Valuation Changes

• The consensus analyst price target has declined slightly, moving from $48.69 to $48.38.
• The discount rate has dropped marginally, decreasing from 9.29% to 9.25%.
• The revenue growth forecast has dipped slightly, updated from -12.48% to -12.49%.
• The net profit margin projection is marginally lower, now at 3.43% from the previous 3.44%.
• The future P/E ratio has decreased modestly, from 47.57x to 47.36x.