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Nomura Names Yahoo, Facebook And Google As Internet's 'Best In Show'

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Nomura Names Yahoo, Facebook And Google As Internet's 'Best In Show'
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In a research note out Friday, Nomura named Yahoo! Inc. (NASDAQ: YHOO), Facebook Inc (NASDAQ: FB) and Google Inc (NASDAQ: GOOG) as the best names in the Internet space. Nomura decreased its price targets on both Yahoo (from $59 to $57) and Google (from $625 to $600). The price target on Facebook was maintained at $90. All of the targets represent at least a 20 percent increase over current prices.

Specifically, Nomura said that investors should buy Yahoo ahead of any corporate action on the January 27 earnings call. The firm sees the potential for Yahoo to spinoff its non-core assets, unlocking shareholder value.

With a PEG ratio less than 1, Nomura sees Facebook’s growth continuing and believes its valuation relative to growth is constructive. It mentions that year-over-year spend among Internet marketers would be 48+ percent in Q4.

On Google, Nomura said that its P/E valuation is more attractive than Disney’s. Q4 revenue growth will come in at nearly 20 percent year-over-year, leading to an attractive historical valuation around 18 times earnings.

Image credit: Vkire, Wikimedia

Latest Ratings for FB

DateFirmActionFromTo
Dec 2017Evercore ISI GroupInitiates Coverage OnOutperform
Nov 2017Canaccord GenuityMaintainsBuy
Nov 2017Credit SuisseMaintainsOutperform

View More Analyst Ratings for FB
View the Latest Analyst Ratings

Posted-In: NomuraAnalyst Color Price Target Analyst Ratings Best of Benzinga

 

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