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Angie's List shares rise following upgrade

The Associated Press

Shares of Angie's List Inc. jumped Friday after a B. Riley Caris analyst upgraded the company's stock, citing its positioning and opportunity.

THE SPARK: Analyst Sameet Sinha upgraded Angie's List to "Buy" from "Sell" and more than doubled his price target, moving it from $7 to $18.

THE BIG PICTURE: Angie's List is a subscriber service that provides online access to business ratings and reviews. It went public in 2011. The company posted a wider loss in its most recent quarter as it invested in advertising and attracted hundreds of thousands of new subscribers, which boosted its revenue by 75 percent.

THE ANALYSIS: Sinha said he has a new appreciation of the company's positioning and opportunity, as well as a better understanding of its improving economics.

"We believe (Angie's List) offers investors exposure to the fast-growing local online advertising market with a high growth, high visibility model," the analyst wrote in a research note.

He said the company appears to be on the path to profitability and that its growth and margin potential is underappreciated.

SHARE ACTION: Angie's List shares rose 39 cents, or 3.2 percent, to $12.50 in afternoon trading. The stock slid through spring and summer and has yet to recover. It has traded between $8.94 and $19.82 over the past 52 weeks.