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Pro Analysis

IAC to rally 25% on Tinder, home services growth, JPMorgan says

A man runs across 11th Avenue in front of the corporate headquarters of IAC in New York City.
Gary Hershorn | Getty Image
A man runs across 11th Avenue in front of the corporate headquarters of IAC in New York City.

Investors should buy IAC/InterActive shares on the strong growth prospects of its diversified internet holdings, according to JPMorgan, which initiated coverage on the company with an overweight rating.

"We believe IAC is positioned well to take share in the large and growing global online dating and US home services markets," analyst Doug Anmuth wrote in a note to clients Tuesday. The bull thesis is driven in part by "upside from Match (MTCH) driven by Tinder strength, more stability in classic brands, and a large ad opportunity."

Anmuth's picks have an 18.8 percent one-year average return with a 67 percent success rate, according to analyst ranking service TipRanks, placing him in the top 1 percent of all Wall Street analysts covering any industry.