Argues adds 4 new stocks to its Focus List

Argus analyst Jim Kelleher just updated the firm's Focus List:

" American International Group Inc. (NYSE: AIG): AIG is a leading provider of insurance products worldwide. The General Insurance segment offers traditional property and commercial insurance along with a number of specialty products. The Life & Retirement segment offers variable and fixed annuities and a family of mutual finds. We like the company’s leading position in global P&C and U.S. life insurance, geographic diversification, efforts to cut costs and sell noncore assets, and strong liquidity. We project an increase in the dividend in 2024 along with significant share repurchases. On valuation, AIG's adjusted price/book ratio and forward P/E are both below the industry median. Our 12-month target price is $74.

·Equinix Inc. (NASDAQ: EQIX): Equinix is a real estate investment trust focusing on interconnected data centers, developing data center platforms and architectures. It offers secure networks and cloud-neutral data platforms and is leveraged to the secular transition to cloud colocation centers. Less than half of revenue is derived in the Americas. Equinix, in our view, is well positioned in the hyperscale datacenter market given its focus on cloud-neutral data platforms in multiuser colocation centers. The company has strong growth prospects in the EMEA and APAC regions, offsetting slower growth in North America. We also expect generative AI to drive increased data center demand.

·Expedia Group Inc. (NASDAQ: EXPE): Expedia is an online travel agency that helps consumers book trips. It reported solid bookings in 3Q, and appears on track to post above-peer-average earnings growth in 2024. We look for an accelerated recovery in 2024, helped by pent-up demand for travel. We also expect Expedia to benefit from growth in its VRBO vacation rentals segment. The shares are trading at 11-times our EPS estimate for 2024, toward the low end of the five-year historical range. We believe a higher multiple is warranted given prospects for earnings growth. Our target price is $158, implying a multiple of 13-times our 2024 estimate and a potential return of 17% from current levels.

· Netflix Inc. (NASDAQ: NFLX): Netflix is a video-on-demand distributor of movies and television shows over the internet worldwide. Subscribers have access to the Netflix content library for a fixed monthly subscription fee. The company offers several service tiers, including a discount advertising-supported service. Netflix derives almost 60% of its revenue from outside the U.S. In in the face of slowing subscriber additions in developed markets, Netflix launched its low-priced advertising-supported subscriber plan in November 2022, and is already making enhancements to the plan. The company has been able to implement several price increases and more rigorous password-sharing policies. While Netflix faces intense competition and may be impacted by economic uncertainty, it remains the "anchor tenant" for consumers in video streaming, with an attractive slate of projects for upcoming release."

You May Also Be Interested In

• Ackman adds Netflix, Visa and Mastercard in portfolio revamp
• Wolfe Research upgrades Biogen, AbbVie on pipeline strength and valuation
• Lamar Advertising acquires AdSource Outdoor in UPREIT deal