Youssef Squali of Cantor rates stocks in the technology sector and is one of the top 25 analysts rated on TipRanks. Today, Squali made four new ratings for Facebook Inc (NASDAQ:FB), Twitter Inc (NYSE:TWTR), Yelp Inc (NYSE:YELP), and LinkedIn Corp (NYSE:LNKD).
Squali maintained a Buy rating on Facebook Inc with a $100 price target. The analyst expect FB to report strong results on Wed., 7/29, showing that user growth and engagement on the platform continue unabated. Revenue growth and margin, at 37% Y/T and 64%, respectively, should be among the highest within the Internet group.
“FB continues to be a top pick for us, given its position as the largest/most engaging mass-reach Internet platform for advertisers, unmatched targeting potential, and very potent monetization formats. While Mobile has been the main driver of growth in the last two years, video should start moving the needle more meaningfully throughout 2015 and 2016, while Instagram, WhatsApp, Messenger, and Oculus provide further upside optionality longer term, in our view.”, the analyst wrote.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Youssef Squali has a total average return of 20.9% and a 64.9% success rate. Squali has a 53.2% average return when recommending FB, and is ranked #21 out of 3712 analysts.
The analyst also provided a rating on Twitter Inc today, ahead of the company second-quarter earning, which is set to be released tomorrow. Squali reiterated a Buy rating on Twitter with a price target of $50. Squali expects TWTR to report revenue growth among the fastest in the group. However, investors’ focus is likely to be on user growth, or lack of thereof, and on interim CEO Jack Dorsey’s short-term and intermediate plans to get the company and the stock out of its funk.
“We believe expectations going into the quarter are relatively muted, with roughly two-thirds of the ratings neutral or negative (FactSet), which positioned the stock well in case of a neutral or positive surprise.” the analyst noted.
Out of the 40 analysts polled by TipRanks, 25 rate Twitter Inc stock a Hold, while 15 rate the stock a Buy. With a return potential of 44%, the stock’s consensus target price stands at $49.56.
Squali maintained a Buy rating on Yelp Inc. with a $68 price target. The analyst expects second-quarter results to be in line with consensus on Tuesday, 7/28, with local ad revenue powering growth at ~44% Y/Y, a rate that remains among the fastest in our coverage universe.
The analyst wrote, “While YELP has been a material underperformer in the last 12 months, due to concerns about slowing ALBA growth and rising competition, we believe the local online ad opportunity remains substantial and the number of players with scale, brand, network effect, and solid execution is limited, positioning Yelp as a prime beneficiary both as operator and acquisition target.”
Out of the 32 analysts polled by TipRanks, 19 rate Yelp Inc. stock a Buy, 11 rate the stock a Hold and 2 recommend Sell. With a return potential of 78.7%, the stock’s consensus target price stands at $60.71.
Squali maintained a Buy rating on LinkedIn Corp with a $245 price target. The analyst expects LinkedIn to post solid second-quarter results on Thursday, 7/30, driven by continued business momentum and helped by the relatively low bar set following mixed 1Q results.”
Squali stated, “We’ll be particularly focused on any improvements in the execution of the sales force transition within Talent Solutions, as well as actions taken to alleviate traditional display advertising declines within Marketing Solutions. We remain positive on LNKD, given the company’s differentiated offerings, good execution to-date, large addressable markets, and nascent but promising opportunity in sales and Marketing Solutions.”
According to TipRanks.com, Squali has a 15.7% average return when recommending YELP, and is ranked #21 out of 3712 analysts.