IAC/InterActiveCorp Ordinary Shares - New IAC

IAC second-quarter results came in below FactSet consensus estimates, mainly due to weakness in Angi from rebranding, which lowered traffic more than expected to websites and apps resulting in a miss on the top- and bottom-line of that business. IAC’s other businesses performed well during the quarter with strong double-digit growth in revenue, which also drove margin expansion. We expect the network effect of the Angi platform to strengthen during the remainder of this year and beyond as the firm’s more aggressive marketing will increase awareness of the new brand and traffic to the platform. We are maintaining our $111 fair value estimate for IAC and believe the shares are overvalued. Based on comparable multiples, our sum-of-the-parts valuation for IAC is $196 per share.