Analyst boosts price target for Angie's List
Analyst raises Angie's List price target, says stronger e-commerce opportunity than realized
NEW YORK (AP) -- The opportunity for Angie's List to make money by letting businesses that list on the site sell products and services and offer coupons and deals is stronger than investors realize, an analyst said Friday as he raised his price target for the consumer review service.
Angie's List provides online access to business ratings and reviews. Its members review companies that provide services for their homes, yards and cars, as well as health care providers. People pay a subscription fee to read the reviews and recommendations. The company went public in November 2011.
Jordan Rohan of Stifel Nicolaus said in a client note that Angie's List had been taking a slow approach to its e-commerce efforts as it tried to minimize risk to its reputation and establish best practices for consumers and service providers. The analyst said that the Indianapolis company is now planning to ramp up its efforts, starting with the roofing, plumbing and handywork categories.
Angie's List's website features a section called "The Big Deal" that lets service providers offer Groupon-style deals on the site. Companies with an A or B grade from customer review can also set up online storefronts on the site.
Rohan raised the price target for Angie's List to $31 from $29 and kept a "Buy" rating.
Shares of Angie's List Inc. fell 7 cents to $26.47 in morning trading.
