Cantor Adjusts Estimates For Netflix, Priceline, Other Internet Stocks Due To Brexit

Following the initial post-Brexit scare, every investor was asking the same question: How will the Brexit impact my stocks? Cantor Fitzgerald analyst Youssef Squali recently went through all of the Internet stocks under the firm’s coverage and adjusted earnings estimates and price targets that were directly impacted by the Brexit vote.

“We note that these adjustments reflect F/X movement only, and not the potential for a deterioration in UK/EU economies from Brexit,” Squali explained.

Related Link: Just How 'Safe' Are U.S. Stocks Post-Brexit?

Estimate Changes

Here’s a summary of the estimates that were changed:

• Cantor estimates that Priceline Group Inc PCLN will take a $0.24 F/X EPS hit in Q2 and a $1.02 hit in the second half of the year. The firm has lowered its price target from $1,525 to $1,510.
• Cantor has lowered its 2016 revenue/EPS estimates for Netflix, Inc. NFLX from $8.752 billion/$0.41 to $8.717 billion/$0.37. The firm has lowered its price target from $140 to $130.
• Cantor has lowered its 2016 revenue/EPS estimates for Shutterstock Inc SSTK from $507.8 million/$1.39 to $500.9 million/$1.37. The firm maintains its $50 price target.
• Cantor estimates that Tripadvisor Inc TRIP will take a $0.04 F/X/ EPS hit in the second half of 2016 and has lowered its price target from $74 to $70.

A Few Favorites

In light of the Brexit vote, Squali recommends Internet investors focus on Buy-rated Alphabet Inc GOOG GOOGL, Facebook Inc FB and Amazon.com, Inc. AMZN.

Cantor’s top small- and mid-cap Internet plays are Shutterstock and Yelp Inc YELP.

Disclosure: The author holds no position in the stocks mentioned.