ANGI Homeservices stock surges 20% after earnings

ANGI Homeservices Inc. shares are up nearly 20% and on track for their best day since 2017 after results that were "close enough to in-line to provide some relief," in the view of Needham analyst Brad Erickson. Though the company narrowed its outlook lower, "the more important commentary was the lack of drop-off in implied Q4 revenue, which bodes well for next year and a faster-than-expected ramp of fixed price offerings heading into 2020," Erickson wrote. "There's clearly a lot of wood to chop as the company thinks about a return to Ebitda growth next year but we wonder if this is the pivotal report where bulls can now rest assured that ANGI's fully washed out." The company also announced two new partnerships and an expansion of its fixed-price offering. Erickson rates the stock a buy with an $11 target price. ANGI shares have dropped 52% so far this year, as the S&P 500 has risen 23%.

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