Resilient Fundamentals for InterActiveCorp (IAC) will Help Navigate Through Structural Headwinds
InterActiveCorp (NASDAQ:IAC) is one of the best communication services stocks according to Hedge Funds.
On December 15, Jason Helfstein of Oppenheimer assigned a Hold rating to InterActiveCorp (NASDAQ:IAC) due to valuation concerns. Looking at the company’s sum-of-parts discount, Helfstein sees limited growth potential in the stock. However, his target price of $45 still offers nearly 17% upside.
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The stock was subject to an upward price target revision by Jefferies analyst Brent Thill on December 11. The analyst reaffirmed his bullish stance by assigning a Buy rating and also raised his price target from $41 to $45.
Jefferies shared its “2026 Internet Playbook” note with investors, reflecting on some of the challenges ahead for Internet stocks. One of the key areas of emphasis was incremental investments by companies that could pose a risk to business margins. Another critical factor discussed relates to AI disintermediation within the industry, which is a notable headwind. Given these potential issues, the firm recommended that investors remain selective with Internet stocks.
Despite the caution, Thill’s Buy rating on InterActiveCorp (NASDAQ:IAC), along with an upward revision in target price, indicates his confidence in business fundamentals.
InterActiveCorp (NASDAQ:IAC) is a media and internet holding company that produces digital content in various forms, including images, videos, and illustrations. They also publish lifestyle and women-oriented magazines under various brand names. Some of the names include FOOD & WINE, Verywell, BYRDEI, Better Homes & Gardens, and Investopedia.
While we acknowledge the potential of IAC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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