Investing.com — Cantor Fitzgerald initiated coverage of 22 global internet stocks in a note on Wednesday called Meta Platforms (NASDAQ:). MercadoLibre (NASDAQ:) and DoorDash (NASDAQ:) as top picks.
The company told investors it is seeing strong opportunities in these companies, powered by AI advances, part profits from offline channels and improving unit economics, despite recognizing macroeconomic risks that could cause volatility in free cash flow growth over the medium term.
Metaplatforms (META): Cantor assigned an Overweight rating and a $660 price target for META, implying an upside of 27%.
The analysts believe that Metas has business “There are plenty of levers to achieve stock gains And generate healthy sales growth” above a compound annual growth rate (CAGR) from the mid-teens over the next two to three years.
Despite skepticism about the return on investment in AI, the company states that Metas current valuation, at 20 times FY25E earnings, is embedded “AI skepticism and some likelihood of a recession” al. They see the potential for further upward revisions to the estimates.
Mercado Libre (MELI): The company assigned MELI an Overweight rating with a price target of $2,530.
Cantor analysts are optimistic MELIs prospects inside both fintech and e-commerce, and expect gross merchandise volume and total payments volume to grow at +17% and +20% CAGR, respectively.
They forecast margin expansion of more than 140 basis points per year between FY24E and FY26E, assuming the valuation has room for it expand with positive revisions.
DoorDash (DASH): With an Overweight rating and a $160 price target, Cantor sees a 24% benefit for DoorDash.
The company expects DoorDash to support gross order value growth driven by user growth, frequency gains and new product adoption, in addition to growing EBITDA margins.
Despite concerns about an economic slowdown, Cantor notes DoorDash’s Strong customer habit could limit recession risk.
