Why Angie's List (ANGI) Stock Is Up Today

NEW YORK (TheStreet) -- Angie's List (ANGI) stock is gaining Friday after Bank of America upgraded the company to "buy" from "neutral" and reiterated a $16 price target. 

By midmorning, shares had added 8.6% to $10.97. 

Bank of America analysts Paul Bieber and Justin Post noted tiered pricing is resulting in stable member ARPU for the company. 

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"ANGI has rolled out tiered pricing to all markets after testing tiered pricing in 20 markets during 1Q. ANGI indicated the adoption rate of the premium pricing tier is better than expected so ARPU is now stable vs. Street expectations of declining ARPUs," analysts wrote in the report. "Stable to improving ARPU may result in improved stock sentiment and less controversy surrounding the model."

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