Netflix (NASDAQ: NFLX) shares could rise as high as $670, Goldman Sachs analyst Heath Terry said in a recent report.
The $70 increase in his price target on the stock, from $600 previously, establishes a new high amid Wall Street observers. The analyst also raised his third-quarter prediction for subscriber growth from previously 4.5 million.
“We expect Netflix to report third-quarter results well above guidance and consensus expectations, with roughly 6 million net subscriber additions,” Terry explained, citing an increase in content, a lack of competition “for entertainment hours and spend,” and more time being spent at home by consumers amid the coronavirus pandemic.
“While management is likely to continue to guide conservatively given outperformance earlier in the year and the massive uncertainty of the current environment, we believe consensus estimates for the fourth quarter and beyond remain too low.”
Pivotal Research just raised its price target on Amazon (NASDAQ:AMZN) to a street-high of $4,500 per share. That’s 15% above its previous current $3,900 target, but 43% higher than where the e-commerce giant closed on Wednesday.
Yet, it’s not a claim made without basis. Other analysts are missing the crux of Amazon’s potential and severely undervaluing its stock because of it, argues the note.
Pivotal Research analyst Michael Levine argues the market misunderstands the potential of Amazon’s advertising business.
Although ads contribute only 5% of Amazon’s total revenue, their impact on operating profit margins is much greater when you remove Amazon Web Services (AWS) from the equation. At $2.1 billion, cloud services represent the vast bulk of Amazon’s total operating income.
Put another way, if advertising was viewed as a stand-alone business, it would represent “well north” of 300% of Amazon’s estimated non-AWS earnings before interest and taxes for 2020. He says that means there is “massive upside” to Amazon’s earnings estimates for fiscal year 2024.
Considering Amazon has already generated around $8 billion in net ad revenue in 2020, and eMarketer forecasts it will grow to $13 billion for the full year (up from $10 billion last year), an argument could be made the analyst isn’t bullish enough. Last year, Pivotal thought Amazon’s ad revenue would hit $38 billion by 2023, though that was pre-pandemic.
Amazon is the third largest ad platform behind Facebook and Google. It might not catch them any time soon, but this is a large opportunity that has yet to be fully tapped.
Goldman Small Cap Research Sets A $5.70 12-Month Price Target For Electromedical Technologies, Inc. (OTCQB: EMED) And Projects The Medical Device Company, Fo-cused On Chronic And Acute Pain Relief, Will Reach Volumes Of $1.55 Million In FY2021 And $17 Million In FY2022
Electromedical Technologies, Inc. (OTC: EMED) is poised to serve as a leading, broad- based chronic pain management bioelectronics provider. Leveraging its currently FDA-cleared flagship device that has a 10,000 unit installed base, EMED is set for clearance of a new device late next year that is smaller, cheaper, and with more capabilities including a telemedicine feature.
Bioelectronics is an important and developing field of “electronic” medicine which uses safe electrical impulses over the body’s neural circuitry to relieve pain, without drugs.
The Company’s innovative, affordable financial model also includes a novel telemedicine feature which, along with efficacy and ease of use, should drive new adoption. EMED’s recurring model includes a nominal down payment, monthly subscription fee, and a premium physician monitoring portal.
Our forecasts include 10,000 units sold upon introduction next year and a conservative 80,000 units sold in 2022, driving revenue to $17 million—which could prove to be conservative.
Even with a 12-month price target of $5.70, EMED’s shares are grossly undervalued. Our target is based on the low-end valuation of one of its comps in the peer group. Link: