Amazon Is Top Internet Pick, But Reverses; BNY Mellon Rated Strong Buy

Evercore ISI’s named Amazon.com (AMZN) its top internet stock pick for 2017, also touting fellow FANG stocks Facebook (FB) and Google parent Alphabet (GOOGL). Raymond James upgraded Bank of New York Mellon (BK) to strong buy.

Amazon

Evercore ISI’s internet analyst Ken Sena named Amazon.com his top pick for 2017. Sena is bullish about Amazon’s ability to harness “big data” from its customer base for marketing purposes. He says the e-commerce giant will get a boost from data-driven efficiencies that open up new geographic markets and product categories.

Amazon rose as much as 1.1% as 780 in the stock market today, moving above its 50-day moving average. But Amazon, which hasn’t closed above its 50-day in two months, pulled back to close up a small fraction, at 772.13 as the broader market retreated.

Sena is also upbeat on China’s e-commerce giant, Alibaba Group (BABA) for similar reasons. Alibaba initially rose but ended the day down 0.14%.

Evercore’s analyst also rated other internet stocks as buys, including Facebook and Google parent Alphabet. Facebook and Alphabet fell 0.92% and 0.66%, respectively.

The closely watched FANG stocks include Facebook, Amazon.com, Netflix (NFLX) and Alphabet’s Google.

Despite outperforming Apple (AAPL) and other  FANG stocks since Republican Donald Trump’s surprise election as President, Netflix remains the most controversial stock of the top tech names heading into 2017. Some 13 analysts rate Netflix stock a hold, about the same as in September, with just a few days left in 2016. Nine analysts rate Netflix stock as a strong buy and 15 rate the video streaming website as a buy.

Netflix fell 1.9% to 125.89 on Wednesday. The stock rose 2.2% on Tuesday to close at 128.35, part of a large handle in a  cup-base formation going back a year, with a buy point of 129.39.

Apple is also controversial, with seven analysts having a hold rating on the iPhone maker, up from no hold ratings in September. Facebook, Google-parent Alphabet and Amazon.com have no hold ratings as bulls rule with a mix of strong buy and buy recommendations. Apple has risen for 13 of the last 15 trading sessions and is approaching a 118.79 buy point, but shares dipped 0.43% Wednesday, to 116.76.

Bank of New York Mellon

Raymond James upgraded the Bank of New York Mellon to strong buy with a price target of 57. Shares in Bank of New York Mellon slipped 0.17% to 47.65 after climbing to 48.52 intraday. The bank’s stock is up 16% in 2016. IBD’s Banks-Money Center group is ranked No. 18 out of 197 industry groups, having shot up since Trump’s election. Morgan Stanley (MS)and Goldman Sachs (GS) are the group’s two highest-rated stocks.

FedEx

In other analyst moves, Cowen & Co. reiterated FedEx (FDX) at outperform with a PT of 240, despite weaker than anticipated volumes during the holiday shipping season.

Janney Capital initiated coverage on generic drug maker  Impax Labs (IPXL) with a neutral rating and a PT of 15, while H.C. Wainwright started biotech  Ocera Therapeutics (OCRX) at buy with a PT of 10. FBR Capital Markets raised its PT on Independence Contract Drilling (ICD) to 8.5 from 6.25.

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