The bank’s price target of $64 on eBay implies upside of nearly 23% from current levels. eBay and Amazon are PNQI’s third and fourth-largest holdings, respectively, combing over 15% of the fund’s weight. Merrill Lynch is also bullish quadruple-digit divas Google (NasdaqGM: GOOG) and Priceline (NasdaqGM: PCLN). The bank’s price targets on those stocks imply average upside of just over 11%. That is particularly impressive when considering Priceline is up 77% in the past year. [Triple-Digit Divas in These ETFs]
Google and Priceline combine for another 15.3% of PNQI’s weight. Merrill likes other online travel names as well, including Expedia (NasdaqGM: EXPE) and TripAdvisor (NasdaqGM: TRIP). Those stocks combine for just over 5% of PNQI’s weight.
Of course Facebook (NasdaqGM: FB) was mentioned in the note. “The rapid increase of mobile advertising sales has put a strong wind at the company’s back. Plus the company has no viable challenger to threaten its 1.1 billion captive user base,” according to 24/7 Wall Street. The shares closed at $57.22, but Merrill has a $64 price target on the stock.
Although shares of Yahoo (NasdaqGM: YHOO) have more than doubled in the past 12 months, Merrill has a $44 price target on the stock. Yahoo closed at $40.92 Thursday. Facebook, PNQI’s largest holding, and Yahoo represent 13.4% of the ETF’s weight. Bottom line: Merrill is sees additional upside for almost half of PNQI’s weight.
PowerShares NASDAQ Internet Portfolio
Tom Lydon’s clients own shares of Amazon, Facebook and Google.