Benchmark Raising Price Target On IACI/Interactive Corp. (IACI)

The Benchmark Company is raising its price target on shares of IACI/Interactive Corp. IACI to $27 from $26 after the company reported strong quarterly results yesterday. Benchmark is keeping its Hold rating on the shares. In a note to clients, Benchmark writes, "Yesterday morning, IAC reported a significant revenue and cash flow beat. Total revenues grew 19% y/y while OIBDA was up 58%. Strength in Search and Match drove the strong performance. IAC continued to repurchase its stock, which is attractively valued at 5x 2010E OIBDA. But there remains uncertainty around the use of almost $1.5 billion in cash. In addition, IAC’s assets are solid but not synergistic. We see decent but uncertain growth potential. Our price target rises $1 to $27 per share. Our rating remains Hold." "We lift our estimates with 2010 OIBDA increasing $36 million to $264 million." Shares of IACI/Interactive Corp. closed at $24.78 yesterday.