Analyst Aaron Kessler bumped up the online consumer review stock to "strong buy" from "outperform," anticipating a pick-up in sales productivity and net subscriber growth this year. Also factored into the decision was good merchant survey results and valuation levels. Kessler has a $23 price target for Angie's List.
Still, a broader look at the market action suggests that a wait and see mode for Angie's list prevails among long-term buyers.
The price action for Angie's List is currently caught between the long-term bears and more medium term bulls, trading below its 200-day moving average of $18.87 but above its 50-day moving average of $13.22.Optimism about the company is outweighed by deep concerns about its financial standing and business model. Angie's List has been challenged recently with a class-action lawsuit alleging that the company has been misrepresenting its financial statements and information, including sources of revenue generation, leading to an inflated stock price. -- Written by Andrea Tse in New York. Follow @atwtse >Contact by Email.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts