Top-ranked analyst Doug Anmuth weighed in today on internet giants Facebook Inc (NASDAQ:FB) and Amazon.com, Inc. (NASDAQ:AMZN), raising price targets on both names.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Doug Anmuth has a yearly average return of 19.6% and a 67.5% success rate. Anmuth has a 55.6% average return when recommending FB and a 25% average return when recommending AMZN. Anmuth is ranked #21 out of 4183 analysts.
Anmuth reiterated an Overweight rating on shares of Facebook, while raising the price target to $175 (from $170), which represents a potential upside of 36% from where the stock is currently trading.
Anmuth laid out an investment thesis for Facebook, noting, “We believe Facebook’s virtual ownership of the social graph, strong competitive moat, and focus on the user experience position the company to significantly improve monetization over time and to become an enduring, blue-chip company built for the long term. Facebook’s massive reach and engagement continue to drive network effects, and its targeting abilities provide significant value to advertisers. We believe it is still very early in the development of Facebook’s ad platform, including an ongoing improvement in ad targetability and measurement as well as a shift toward ads with higher quality formats, which we believe will become increasingly valuable to advertisers.”
Out of the 38 analysts polled by TipRanks (in the past 3 months), 33 rate Facebook stock a Buy, while 5 rate the stock a Hold. With a return potential of nearly 23%, the stock’s consensus target price stands at $156.91.
Anmuth raised his price target for Overweight-rated Amazon and now sees the stock reaching $1,000.
The analyst explained, “We are establishing a Dec 2017 PT of $1,000, up from our Dec 2016 PT of $925. Our price target is based on a sum-of-the-parts analysis as we believe this methodology appropriately attributes value to the company’s large, fast-growing and surprisingly profitable (from a CSOI perspective) AWS segment, which Amazon continues to invest in.”
“We believe Amazon continues to show strong ability to take share of overall eCommerce, and its flexibility in pushing first-party versus thirdparty inventory is a major advantage compared with other retailers. We think Amazon remains a share gain story in EGM and Media, and we believe the recent AWS disclosure shows segment profitability that exceeded virtually all expectations. High AWS profitability gives us increased confidence in the business and also drives a meaningful increase in our SOP valuation,” Anmuth said.
TipRanks analytics exhibits AMZN as a Strong Buy with 31 of analysts issuing a Buy rating for the stock, while only one maintaining a Hold rating. The consensus target price for AMZN is $910, marking a 11.58% upside from current prices.