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.
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