Sheridan lifted his target for Menlo Park, Calif., social-media giant Facebook to $330, topping Wall Street estimates, according to Bloomberg. The target was previously $242.
The analyst affirmed his buy rating on enthusiasm about the company’s exposure to e-commerce, The Fly reports.
Sheridan boosted his Alphabet target to $1,970 from $1,600, again maintaining a buy rating. With the Mountain View, Calif., tech and advertising giant, too, he’s impressed with the connection of its ad business to e-commerce, Bloomberg reports.
As for Facebook, its rising exposure to e-commerce will boost revenue, Sheridan wrote in a commentary, according to The Fly.
About 99% of Facebook’s sales come from ads. The rise of social commerce and its contribution to "highly effective" advertising outcomes also is a plus, he said.
When it comes to Alphabet, “the underlying rate of recovery [in the digital advertising market] is being underestimated by the market,” Sheridan wrote in a commentary, according to Bloomberg.
Advertising is “increasingly levered to sustained e-commerce trends,” he said.
Ad sales account for 80% to 85% of revenue at Alphabet.
The growth of Google Cloud also should push revenue higher and profit margins wider, Sheridan said, according to The Fly.
The "upside optionality" of Google's e-commerce and Local/Maps offering is another positive factor, he said.
Facebook shares recently traded at $272.65, up 0.5%. The stock had jumped 32% so far this year through Monday.
Alphabet shares were 0.4% higher at $1,591.07. The stock climbed 18% year to date through Monday.