A recent report by Goldman Sachs focused on Internet stocks and what analysts see in store for investors throughout the remainder of 2015. Despite the fact that Internet stocks have outperformed the S&P 500 by 4.5 percent so far this year, analysts believe that there is still room for further outperformance.
Netflix, Inc. NFLX 3.43%
Analysts like Netflix’s strong continued growth potential and see the company benefiting from its recent international push. Goldman raised its price target for Buy-rated Netflix from $460 to $510 based on a 50X multiple applied to 2016 EV/EBITDA projections.
GrubHub Inc GRUB 0.23%
Analysts see several potential risks to the company’s outlook, including rising customer acquisition costs, restaurant attrition and take rate. However, they raised their target for Buy-rated GrubHub from $49 to $51 based on a combination of 35X 2015 EV/EBITDA and 14X 2015 EV/Sales projections.
RetailMeNot Inc SALE 2.72%
Analysts raised their price target for the Neutral-rated stock from $16 to $18 based on recent evidence that the transition from desktop to mobile has been more successful than expected. The new target is based on a combination of 8X 2015 EV/EBITDA and 4X 2015 EV/Sales projections.
Rocket Fuel Inc FUEL 1.66%
Analysts see increasing competition, margin compression and international pressures as potential risks for the stock in the immediate future. In addition, recent multiple compression among peers has led Goldman to reduce its target price for Neutral-rated Rocket Fuel from $12 to $11.
TripAdvisor Inc TRIP 0.3%
Analysts dialed back 2015-2017 revenue and adjusted EBITDA estimates for Neutral-rated TripAdvisor after the company released its latest revenue segment disclosures. The latest disclosures coupled with the changing forex environment convinced analysts to reduce revenue and earnings projections by less than 1.0 percent each. Goldman has a $74 price target on the stock.
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