ANGI stock price target lowered to $27 from $32 at Goldman Sachs

ANGI Inc. is experiencing divergent analyst sentiment following recent earnings reports, with Goldman Sachs lowering its price target to $27 from $32 (Neutral) after Q3 2025 results, despite management's projection for normalized growth in 2026 driven by AI-first initiatives and tech consolidation. Conversely, Truist Securities and UBS recently raised their price targets to $28 and $22, respectively, after stronger Q2 2025 results highlighted improved strategic focus, positive EBITDA/FCF impact from higher-quality transactions, and growth in proprietary service requests. Trading at $11.85, the stock is significantly below these targets, with InvestingPro suggesting undervaluation, as the company anticipates a gradual return to positive revenue growth in fiscal year 2026.

Analysis

ANGI Inc. (NASDAQ:ANGI) presents a mixed analyst landscape, with Goldman Sachs lowering its price target to $27 from $32 (Neutral) following Q3 2025 results, while Truist Securities and UBS recently raised their targets to $28 (Buy) and $22, respectively, after stronger Q2 2025 performance. Despite a 28.61% year-to-date decline, the stock currently trades at $11.85, significantly below all analyst targets and InvestingPro's fair value assessment, suggesting potential undervaluation.

The company is actively pursuing a strategic pivot, including a transition to an AI-first platform with an AI native application and consolidating its technology platforms from four to one for enhanced efficiency and innovation. This focus on higher-quality transactions positively impacted EBITDA and free cash flow in Q2 2025, marking the first growth in proprietary service requests and leads since early 2021, despite a revenue decline of over $400 million.

Management anticipates a return to normalized growth in 2026, with Q3 guidance suggesting a gradual progression towards positive revenue growth in fiscal year 2026, supported by reinvestment in brand advertising and proprietary channels. ANGI also boasts impressive gross profit margins of 94.86% and has increased its share repurchase authorization to 3.2 million shares, signaling confidence and commitment to shareholder returns.

Key Decisions for Investors

• Investors should evaluate ANGI's current valuation of $11.85 against analyst price targets and InvestingPro's fair value, considering the significant discount.
• Monitor the execution of ANGI's AI-first platform strategy and technology consolidation, as these are key drivers for the projected return to normalized growth in 2026.
• Assess the sustainability of improved EBITDA and free cash flow from higher-quality transactions, alongside the impact of increased share repurchase authorization on shareholder value.