Dec 4 (Reuters) - Barclays Capital upgraded the Internet sector to 'positive' from 'neutral,' citing strengthening fundamentals despite near-term effects of the slowdown in the economy.
The brokerage said increased usage and dependence would leave the sector well-positioned when the macro-economic environment improved.
'We recognize that growth is slowing, but we believe the Internet still remains an area of secular growth,' said analyst Douglas Anmuth in a note to clients.
Anmuth added that he expects both e-commerce and online advertising to re-accelerate when the economy stabilized.
The brokerage listed Google Inc, Amazon.com Inc , Netflix Inc and Blue Nile as its top picks in ranking order.
Barclays also upgraded Amazon.com and Blue Nile to 'overweight' from 'equal weight,' saying the Web retailers had a structurally solid business model which could strengthen as competition continued to struggle.
The brokerage downgraded shares of Internet media company IAC/Interactive Corp to 'equal weight' from 'overweight' on valuation.
Barclays said despite less strong tailwinds of broadband penetration and search, it was optimistic on international growth, and growth in mobile, video, and more targeted advertising.
(Reporting by Deepti Govind in Bangalore; Editing by Amitha Rajan) Keywords: INTERNETSECTOR RESEARCH/BARCLAYS (deepti.govind@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: deepti.govind.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The brokerage said increased usage and dependence would leave the sector well-positioned when the macro-economic environment improved.
'We recognize that growth is slowing, but we believe the Internet still remains an area of secular growth,' said analyst Douglas Anmuth in a note to clients.
Anmuth added that he expects both e-commerce and online advertising to re-accelerate when the economy stabilized.
The brokerage listed Google Inc, Amazon.com Inc , Netflix Inc and Blue Nile as its top picks in ranking order.
Barclays also upgraded Amazon.com and Blue Nile to 'overweight' from 'equal weight,' saying the Web retailers had a structurally solid business model which could strengthen as competition continued to struggle.
The brokerage downgraded shares of Internet media company IAC/Interactive Corp to 'equal weight' from 'overweight' on valuation.
Barclays said despite less strong tailwinds of broadband penetration and search, it was optimistic on international growth, and growth in mobile, video, and more targeted advertising.
(Reporting by Deepti Govind in Bangalore; Editing by Amitha Rajan) Keywords: INTERNETSECTOR RESEARCH/BARCLAYS (deepti.govind@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: deepti.govind.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2008 AFX News
