Citi opens ‘positive catalyst watch’ on IAC into Angi spin

Citi opened a “90-day positive catalyst watch” on IAC (IAC) shares given the board’s approval for a plan to spin-out its Angi Inc. (ANGI) held shares to IAC shareholders via special dividend. Citi sees the Angi spin as a catalyst to help unlock IAC’s stub value, which it finds valued at “just” $300M after adjusting for its Angi and MGM equity stakes and net debt. IAC shares are undervaluing the stub businesses and the valuation will need to adjust post-spin, the analyst tells investors in a research note. Citi keeps a Buy rating on IAC.