Shares of ANGI Homeservices (NASDAQ:ANGI) were gaining last month as the online marketplace for home services continued to benefit from a favorable climate for home improvement, with the pandemic leading to more time spent inside the home. That situation along with some positive analyst notes helped push the stock up 12% in June, according to data from S&P Global Market Intelligence.
The chart below shows the stock's path over the course of the month.
The stock of ANGI Homeservices rallied through the first week of June in response to economic data, including a strong May employment report that showed the economic recovery happening faster than expected. That first week, Deutsche Bank raised its price target on the stock from $10 to $12.50 as analyst Kunal Madhukar said that April trends were better than expected and that he was "cautiously optimistic" about the company's recovery.
The following week, Oppenheimer raised its price target on ANGI from $10 to $15 after analyst Jason Helfstein said his research showed demand for home improvement increasing by the mid-teens in May, and pointed to a survey from McKinsey that showed 35% of those questioned planned to spend more on home improvement in light of travel and entertainment closures.
The May retail sales report also confirmed increased spending on home improvement, as sales in the category rose 16.4% from the year before, a bullish sign for ANGI, which owns the websites HomeAdvisor, Angie's List, and Handy.
ANGI built on this momentum to start July, gaining 10.5% over the first two sessions after the company released the results of a survey that showed 90% of homeowners who normally hire a home services pro are planning to do that this year and that 38% plan to use a stimulus payment for a home improvement project. Those results show that ANGI seems to be benefiting from the stay-at-home aspects of the crisis. With many states shutting down bars and restaurants again as coronavirus cases spike, that effect could last at least for several months.