Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Angie's List (NASDAQ:ANGI) soared today by as much as 10% after an analyst initiated coverage on the stock at "overweight."
So what: Piper Jaffray gave the equivalent of a "buy" rating alongside a $25 price target, leading shares to rally to fresh 52-week highs on bullish analyst sentiment. The analyst believes that the company has both top- and bottom-line upside in the near-term, with revenue expected to grow at 34%.
Now what: Piper Jaffray's estimates are higher than the rest of the Street, which thinks sales will only grow by 25% in 2015. The analyst also cites Angie's List's scalability and local commerce leverage as additional reasons to be optimistic. Piper Jaffray is modeling for $74 million in EBITDA for 2015, also higher than consensus. The price target is derived from a 19 times EV/EBITDA multiple.
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Fool contributor Evan Niu, CFA has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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