KeyBanc has reduced its target price for ANGI Inc (NASDAQ:ANGI) to $11.00 from $17.00, while keeping an Overweight rating on the home services marketplace operator. The cut comes in the wake of ANGI's fourth-quarter results and its revised outlook for 2026, which KeyBanc described as disappointing.
ANGI shares are trading at $9.20 and recently dropped close to 20% over the prior week, trading near their 52-week low, according to InvestingPro data. The company has said its return to revenue growth will now occur a quarter or two later than management had earlier expected.
InvestingPro data indicate ANGI remains profitable, with a price-to-earnings ratio of 11.92. Analysts covered in those data anticipate only modest revenue expansion of roughly 3% for fiscal 2026.
Management has revised 2026 guidance downward - moving from a midpoint consistent with mid-single-digit revenue growth to a new projection in the low-single-digit range. Key drivers cited for the reduced outlook include persistent SEO weakness, ongoing network channel headwinds, and delays in the product roadmap following a recent reduction in force.
KeyBanc's review of the company’s results suggests these headwinds will also limit margin expansion compared with prior expectations. The firm highlights that margin improvement is now expected to be more modest, reflecting the combined effects of the growth delay and the operational pressures KeyBanc identified.
Despite the tougher near-term view, KeyBanc pointed to a set of potential positive catalysts that could support recovery and long-term value creation. Those include momentum in proprietary channels, planned increases in branded marketing spend, greater capacity among professional service providers on the platform, and gains from increased monetization.
Other recent developments in the ANGI story include an earnings release scheduled for February 10 and a follow-up earnings call the next day. The company has also announced plans to eliminate roughly 350 positions as part of a restructuring.
Notably, KeyBanc Capital Markets has reiterated its Overweight rating with a $17.00 price target, and Benchmark has reaffirmed its positive stance by keeping a Buy rating and a $27.00 price target. These analyst positions indicate continued conviction from some corners of the sell-side despite the revised guidance and operational challenges.
At the start of 2026, ANGI shares opened at $13.07 but have since slipped below $13. Investors are watching management's strategic moves, the workforce reduction, and the upcoming earnings release closely for signs of stabilization or a clearer path back to stronger growth.
Context note: The information above is based on company guidance, sell-side commentary, and InvestingPro data provided alongside the company’s reporting and subsequent analyst notes.