Angie's List A Potential Takeover Target In 2017

Analysts are looking for Angie’s List Inc ANGI's turnaround story to pick up in 2017. The company is expected to post in-line revenues and a slight beat, according to analysts at Loop Capital, when the company reports 4Q results Wednesday.

Analyst's Take On Angie's List Looking Forward

“We expect premium memberships and membership revenue to continue to decline in Q4. The company announced it reached five million members by the end of the year but the lack of other new information likely means an inflection in the turnarnound is not imminent,” said Loop Capital on Tuesday.

Related Link: An Acquisition Of Angie's List Still Makes Sense

Loop Capital forecasts have Angie’s List membership revenue declining 26 percent year-over-year in Q4, and declining another 12 percent in 2017.

Upside Ahead

Despite the near-term weakness, Loop Capital sees considerable upside in Angie’s List, citing that the company is making the right moves and that initial steps of transformation have yet to be fully realized. The firm maintains a Buy with a $12.00 price target, representing more than 100 percent upside.

Analysts are expecting the turn around to pick up in late 2017, and they feel confident the company will either be acquired or enter a strategic partnership.

“We believe the company has strategic value with its 10 million+ user generated reviews, 4 million members, data on service providers and 56,000 advertising contracts and we expect to find an acquirer or strategic partner this year.”

At last check, shares of Angie's List were down 3.31 percent at $5.85.