Wedbush initiated coverage on IAC with an "outperform" rating and a $295 price target
The shares of IAC/InterActiveCorp (NASDAQ:IAC) are down 0.4% to trade at $244.98, lower despite an initiation of coverage at Wedbush with an "outperform" rating and $295 price target -- a roughly 20% premium to Friday's close. This comes just a few days after the firm dissolved its stake in Match Group (MTCH), the brokerage firm citing strong growth prospects for IAC following the split, and adding that the company could make as much as $2.2 billion in cash as a result. It's worth noting that the analyst also initiated coverage on MTCH with a "neutral" rating.
Wedbush's optimism is nothing new, as 18 of the 19 firms covering the stock call it a "buy" or better. Plus, the consensus 12-month price target of $281.11 is a solid 14.4% premium to Friday's close.
News over the breakup had the security soaring last week. IAC managed to tack on 9.4% for the week, topping recent pressure at its 80-day moving average and hitting a thee-month closing high of $245.84. While the security is cooling off today -- which may have been foreshadowed with its 14-day Relative Strength Index (RSI) of 75, which surged directly into overbought territory last week -- it boasts a 34% gain for the year.