IAC leadership reorganization not expected, says Citi

Citi keeps a Buy rating on IAC (IAC) with a $56 price target after the company announced board approval for its spin-out of Angi Inc (ANGI) to IAC shareholders alongside a leadership reorganization with current CEO Joey Levin leaving his role to become Angi’s Executive Chairman. While the Angi news was as expected, IAC’s leadership reorganization was not, the analyst tells investors in a research note. This represents a “notable shift” with Barry Diller set to take a more active role as the remaining executives will now report to him, contends Citi. The firm believes the Angi spin frees up capital and management mindshare where Diller has pointed to wanting to build cash for acquisitions.