Looking forward to a publish-pandemic financial restoration, a Morgan Stanley internet analyst has lifted his price targets on a wide range of stocks. But he’s also cautioning traders to carry on cautiously specified what the current market has previously priced in.
Brian Nowak writes in a observe Thursday that his favourite picks among the the reopening plays are Uber (ticker: UBER) and Alphabet (GOOGL).
On the on-line vacation team, Nowak factors out that visitors to hotel web sites is picking up faster than to online journey company web pages. But the analyst says that gap is wider in the U.S. than in Europe, in which
(BKNG) has much more publicity than
(EXPE). When he raises his goal on Expedia to $200 from $160, he finds Scheduling to be a extra desirable expense selection. Nowak has Equal Body weight ratings on each shares.
Nowak lifts his targets for both of those journey-sharing stocks Uber and Lyft (LYFT). For Uber, he goes to $75, from $70, and for
to $65 from $60. But he has a apparent choice for Uber, asserting that its “multi-products, world-wide providing warrants a quality to Lyft’s a number of.” The analyst has an Chubby rating on Uber, an Equivalent Bodyweight on Lyft.
He boosts his concentrate on on
shares to $32, from $26, but maintains an Underweight rating, noting that he is “skeptical” about the company’s means to structurally strengthen its advert business enterprise and advancement submit-recovery.
On Alphabet, his new goal is $2,350, up from $2,200. He considers Google’s guardian business to be a “recovery dim horse” that should advantage from a pickup in journey-associated advert profits as the economy reopens extra. He estimates that 10% to 15% of paid look for income comes from vacation-linked companies.
Among the shares Nowak discusses, Expedia and Reserving are both equally up about 1%, Uber and Lyft equally have gains of about 1.2%, Yelp is down 1% and Alphanet is off .9%.
Write to Eric J. Savitz at [email protected]