Pivotal Roundup On Q4 Model Updates For These 5 Internet Giants

Pivotal Research commented on Facebook Inc FB, Google Inc GOOG, Salesforce.com, Inc. CRM, Twitter Inc TWTR and Yahoo! Inc. YHOO ahead of Q4 earnings. All were Buy-rated except for Yahoo, which was rated Hold.

Analysts led by Brian Wieser updated their “models and price targets for companies...related to internet advertising and digital marketing services" and Facebook remained the firm’s favorite name in the sector. The Facebook YE2015 price target is $105, up from $103 previously.

The firm’s valuation on Google on a YE2015 basis is $425 billion (including $79 billion in cash), or $610 per share. Wieser noted that "Google [is] attractive at current price levels."

The firm thought “there is increasing reason for positivity around [Twitter’s] ability to monetize its platform. Our valuation on the company’s equity is now $36bn, which applies against 710mm shares on a YE2015 basis to derive our new $50 price target.”

“Yahoo’s value seemingly couldn’t be more removed from its core business if it tried, and the subjectivity associated with valuing its components remains challenging,” according to Wieser. The firm set a $54 price target on Yahoo shares.

“Salesforce.com retains a strong presence in [the marketing automation technology] space given its dominance of middle-market CRM solutions, and from this base the company retains a solid overall position,” according to the note. The firm set a $80 price target on Salesforce.com.