By Dhirendra Tripathi
Investing.com – IAC (NASDAQ:) 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.
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:) and Wells Fargo (NYSE:) 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, 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.
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