J.P. Morgan lowers stock ratings for Angi, Getty Images and Playstudios

People Incorporated

18/12/2024 13:59

** Brokerage J.P.Morgan downgrades home services company
Angi  ANGI.O , stock image platform Getty Images  GETY.N  and
casual games developer Playstudios  MYPS.O  
    ** Downgrades Angi to "neutral" from "overweight" 
    ** ANGI has taken significant steps to improve consumer
experience and profitability in recent years, but revenue
declines have been significant - J.P.Morgan
    ** Brokerage notes increased uncertainty from FCC's 1x1
consent rule and sooner than expected spin of IAC's  IAC.O  85%
stake; says revenue growth is needed for ANGI shares to re-rate
higher, but it's not expected until 2026 
    ** Downgrades Getty to "underweight" from "neutral" 
    ** Brokerage cites limited 2025 revenue growth and margin
expansion, ongoing uncertainty on longer-term impact of
generative AI on industry
    ** Brokerage downgrades Playstudios to "underweight" from
"neutral"
    ** Cites pushed back playAWARDS monetization,
underperforming Tetris titles and social casino headwinds
persisting in 2025
    ** Sees MYPS revenue to decline 8% in 2025, which is 2%
below estimates and lags mobile gaming industry growth in
mid-single-digit percentages
    ** Up to last close, ANGI, GETY and MYPS stocks down 30.5%,
51% and 22.5%, respectively, YTD

 (Reporting by Neil J Kanatt in Bengaluru)
 ((Neil.JKanatt@thomsonreuters.com;))