Evercore ISI equity analysts updated their Tactical, Action & Positioning (TAP) List as Q4 earnings season gets into the full swing.
DoorDash (NASDAQ:DASH) and Meta Platforms (NASDAQ:META) are added to the Outperform List. For the latter, analysts see “the short term risk-reward here as attractive.”
“The company has already laid out its '24 Totex and Capex outlooks, which clearly suggest that the Year of Efficiency is morphing into the YearS of Efficiency, with Op Margin expansion highly likely. Channel checks suggest potential for Beat & Raise revenue results,” analysts wrote.
Amazon’s (AMZN) place in the list is reaffirmed.
“We view the near term risk/reward outlook here as highly attractive. The key debate relates to AWS growth. With the recent 15% pullback, this is now priced in. We instead see the probability (>50%) of acceleration in Q3 or Q4, which would be the unlock, as AMZN is trading 30% below its pre-COVID median multiple,” analysts added.
On the other hand, Airbnb (ABNB) and Alphabet (NASDAQ:GOOGL) have been included in the Underperform List ahead of Q4 results. Analysts are concerned about Airbnb’s Q1 outlook.
Similarly, analysts argue that GOOGL’s Street Operating Margin and Operating Income estimates for Q4 are “too aggressive, given normal seasonal drag factors, as well as the full quarter impact of Sunday Ticket expenses.”