UPDATE: JG Capital Initiates IAC/InterActiveCorp with Overweight on Multiple Positive Factors

In a report published Wednesday, JG Capital analyst Elvina Mintarno initiated coverage on IAC/InterActiveCorp (NASDAQ: IACI) with an Overweight rating and $58.00 price target.

In the report, Mintarno noted, “IAC is a complex company with unrelated businesses in the core areas of search, applications, online dating, local and media. Its portfolio of 50 online businesses across more than 30 countries provides broad exposure to internet trends. The company has intrinsically impressive growth rate, total EBITDA grew 36% in 2012 and 17% in Q1 2013. The Search segment has several challenges including disruptive Google policy changes, a seismic mobile transition, unclear browser developments, etc. The Match segment continues to digest acquisitions and should continue to drive value as growth accelerates and margin expands. They are also gaining traction in developing match segment (OkCupid, Tinder, etc) with monthly active users up 5x YoY. Overall, IACI offers investors one of the best risk/reward trade-offs in the space. The stock uniquely presents a dividend paying, share back buying, high growth sustaining, margin expanding, inexpensive internet stock; all of which presents a unique investment opportunity.”

IAC/InterActiveCorp closed on Tuesday at $49.20.