Angie's List lost 5.1% to $17.89.
The bank set a price target of $22 for the company. Analyst Paul Bieber said the downgrade is because Street EBITDA estimates are too high for Angie's List. He notes that shares of the company are up 24% in the past year, and that he expects in-line fourth-quarter results.
"We estimate 2014 EBITDA of $10.8mn vs. the Street at $21.2mn, and we estimate 2015 EBITDA of $37.2mn vs. the Street at $64.5mn," Bieber wrote. "The company is improving profitability at a pace of $25-30mn a year, and the Street seems to be modeling an accelerating pace."