Forget The FANG Trade. What About GAFT?
In a series of new research reports, Deutsche Bank explains why it may be time for investors to forget about FANG -- (Facebook, Amazon, Netflix, Google) a term and trade popularized by Jim Cramer -- and go with GAFT stocks in 2016.
Analyst Ross Sandler believes Google is “shifting into the phase where the financials need to show upside—and we want to add to positions into the print.” The firm has Buy rating on Google and a $900 target price.
Sandler calls Amazon “arguably the best long term story in large cap internet,” but cautions that the company could regress from margin expansion mode to investment mode again in 2016. Deutsche Bank has a Buy rating on Amazon and a $800 price target for the stock.
Related Link: Here's Every Product Catalyst For The Tech Space In 2016
Sandler notes, “Expectations appear low given the concerns around the opex and last quarter’s ad load comments,” and believes there is opportunity for the company to surprise to the upside in 2016. Deutsche Bank has a Buy rating and a $125 price target on Facebook.
Sandler writes, “At $14B market cap, TWTR is becoming very compelling especially as we add-on Periscope and Vine.” Deutsche Bank has a Buy rating on Twitter and a $40 target price.
Disclosure: the author has no position in the stocks mentioned.
Latest Ratings for FB
|Jan 2017||Pacific Crest||Reinstates||Overweight|
|Jan 2017||Raymond James||Upgrades||Outperform||Strong Buy|
|Jan 2017||Aegis Capital||Initiates Coverage On||Buy|
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