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Top Tech ‘Buy’ Stocks: Citi Analyst

Tuesday, 9 Jul 2013 | 6:14 PM ET
Top Tech 'Buy' Stocks: Citi Analyst
Tuesday, 9 Jul 2013 | 5:25 PM ET
A few internet names are on fire, Citigroup's Mark May says.

A few internet names are on fire, Citigroup's Mark May said Tuesday after initiating coverage on the sector following the closing bell.

"Every stock except one has a P/E below 20," he said. "It's a good group to look at."

That one stock was rated a "sell."

On CNBC's "Fast Money," May had high praise for Google, on which he held a "buy" rating, with a price target of $1,100 per share.

"Google is just one of the best companies in the universe," he said.

May noted the company's positioning in mobile and video, as well as its growth rate of "20 percent-plus growing at a 6 percent free-cash-flow yield."

Amazon.com was also rated a "buy," with $340 price target.

May said that he wasn't looking at the company on a sum-of-the-parts basis, but noted that like eBay, it had a cloud computing component – Amazon Web Services – that was "on fire."

(Read More: Mario Gabelli's 3 Bright Investment Areas)

2 Remaining Bids for Hulu
Sources say Guggenheim is out of the Hulu bidding process. The remaining 2 bids are from DirecTV and AT&T, reports CNBC's Julia Boorstin.

Netflix was May's "highest rated 'neutral' stock," he said, based on the streaming video service's subscription price, which hasn't been scheduled to rise.

Facebook was also rated "neutral."

"We'd like more clarity and transparency," May said.

(Read More: Apple Likely to Cut iPhone Forecast: Analyst)

May also issued "buy" ratings on Yahoo and eBay and "neutral" ratings onLinkedIn and Facebook, which he called "a young company" from which he would like to see "more clarity and transparency."

Only one stock on his list had a "sell" rating: OpenTable.

"It's not that it's a bad company, we just think at 30 times earnings, 15-16 times EBITDA, it's overvalued vs. the kind of growth we expect over a three-year period," he said.

(Watch Video: 2 Remaining Bids for Hulu)

Trader disclosure: On July 9, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Josh Brown is long AAPL; Josh Brown is long XLU; Josh Brown is long HAL; Josh Brown is long CVX; Josh Brown is long V; Anthony Scaramucci is long C; Anthony Scaramucci is long WFC; Anthony Scaramucci is long MSFT; Anthony Scaramucci is long GOOG; Brian Kelly is long US dollar; Brian Kelly is short BRITISH POUND; Brian Kelly is short COPPER.

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OPEN
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