Deutsche Bank Raises PT on Facebook (FB) to $40
January 31, 2013 3:32 PM EST
Despite three downgrades following Q4 results after the close, Facebook (NASDAQ: FB) has convinced at least one firm that its prospects are in fact brighter.
Deutsche Bank reiterated its Buy rating and raised its price target on price target of $40.00 (from $37.00) following the print.
The firm commented: "FB reported revenue and operating income 1% and 5% above our estimate, with ad revenue (including mobile) in-line. The 41% ad growth was below the heightened expectations into the quarter, but demonstrates progress for FB in newsfeed. The operating expense ramp up reduces our EBITDA in 2013 by 16%, but oddly we view it as taking one of the uncertainties out of the picture for 2013. Shares remain Buy rated, we would let the dust settle post-quarter and would recommend adding to positions on weakness."
kudos to the hoodied management team here by addressing the mobile weakness in her ipo filing and making this fastest growing market segment her signature in less than a year. astonishing.
jp morgan upgraded facebook to BLUE-CHIP status before earnings and we still have not heard from this ROCK STAR analyst team today. maybe tomorrow? lets see what happens.
In a report published Monday, J.P. Morgan reiterated its Overweight rating and $35.00 price target on Facebook.
J.P. Morgan noted, “We believe Facebook's virtual ownership of the social graph, strong competitive moat, and focus on the user experience position the company to significantly improve monetization over time and to become an enduring, blue-chip company built for the long term. Facebook's massive reach and engagement continue to drive network effects and its targeting abilities provide significant value to advertisers, though it is still early. We believe Facebook's ad platform is just beginning to shift toward more social ads with higher-quality formats, and it will become increasingly valuable to advertisers.”