ANGI Homeservices (ANGI) Stock Forecast & Price Target

Angi is viewed positively because results were better than feared, with 3Q26 Adj. EBITDA rising 6% y/y to $42M and margin expanding 250 bps to 17.4%, while revenue per lead increased 10% as the mix shifted toward higher-value Large Pros. Management’s pivot toward higher-margin Ads and Leads, coupled with ProCRO and broader AI-native product initiatives, supports the thesis that better conversion, stronger pro engagement, and new traffic channels can improve monetization over time. Cost discipline is also a key tailwind, as the ~300-role restructuring is expected to generate $50-60M in annual run-rate savings and help offset still-challenging revenue comparisons into 2027.

Angi is facing a deteriorating core marketplace, with 3Q26 revenue of $242M down 9% y/y as Leads fell 18% and Average Monthly Active Pros dropped 14%, signaling weaker demand and a shrinking supply base. While monetization improved and average monthly revenue per active Pro rose 6% y/y, that offset was not enough to overcome declining traffic, a 30% reliance on Google for traffic, and a re-branding effort that may further disrupt consumer awareness and funnel conversion. The company’s move toward a transaction-based, AI-native platform could pressure margins in the near term, especially as Services grows at 15% to 20% gross margins, leaving limited visibility that growth can reaccelerate sustainably.