Seaport starts 10 companies in Internet sector with 7 Buy ratings

Seaport Research initiated coverage of ten companies within the Internet sector, including Online Advertising, eCommerce/Transaction Models, and SMB Services/Web Presence companies. The firm is constructive on the long-term growth of the sector, though revenue growth is “generally mixed,” with some companies still recovering from the pandemic and others facing tougher comps, the analyst tells investors. Many of the ten covered companies have increasingly focused on operating margins over the last 12-18 months and are beginning to see the benefits as growth stabilizes and in some cases reaccelerates, added the analyst, who sees the group being set up for outperformance going into 2024. Among the group, Seaport starts Amazon (AMZN) with a Buy rating and $145 price target; Godaddy (GDDY) with a Buy and $85 target; Meta Platforms (META) with a Buy and $365 target; Pinterest (PINS) with a Buy and $33 target; Squarespace (SQSP) with a Buy and $35 target; Uber (UBER) with a Buy and $51 target; Wix.com (WIX) with a Buy and $103 target; Airbnb (ABNB) with a Neutral rating; Alphabet (GOOGL) with a Neutral and DoorDash (DASH) with a Neutral rating.