By Dhirendra Tripathi
Investing.com – IAC (NASDAQ:IAC) rose more than 2% in Wednesday’s trade after Cowen analyst John Blackledge raised his price target, citing interest in video hosting and sharing platform Vimeo (NASDAQ:VMEO).
Blackledge's new price target is $300, up from $265 earlier. The target is nearly 15% higher than the stock’s current price.
On March 25, analysts at Jefferies (NYSE:JEF) and Wells Fargo (NYSE:WFC) stuck to their buy ratings on the stock. Jefferies has a target of $275 for the stock while the latter has pegged it at $280.
Last December, IAC announced plans to spin-off off Vimeo as a standalone company with the process expected to close in the second quarter of this year. Vimeo raised fresh funding this January to take its pre-money valuation to $5.7 billion.
“We believe the actual valuation should be closer to ~$10.8 billion. After scrutinizing Vimeo’s disclosures at their March 24 analyst day, we conducted a proprietary survey of corporate customers that found a market far larger than expected; growing faster than most investors probably appreciate; with pricing upside that provides a significant tailwind,” Blackledge wrote in his note.
Vimeo has set up an 11-member board to oversee the spinoff.