Wedbush Initiates Facebook at Outperform, $44 PT
Wedbush Securities has published a research report on Facebook (NASDAQ: FB) initiating coverage with an Outperform rating and $44 price target.
In the report, Wedbush Securities writes, "According to an NPD In-Stat report dated April 2012, total worldwide revenue from the sale of virtual goods on social networking sites, online worlds, and casual games is expected to grow to $14 billion by 2016, up from $9 billion in 2011. Facebook currently receives fees from platform developers when users purchase virtual and digital goods through the payments infrastructure. We estimate that in the typical transaction, Facebook retains up to 30% of the face value of purchases, the rate disclosed for Zynga. We expect Facebook to make increased use of Facebook credits a priority in 2012."
Facebook's IPO is scheduled for May 18, 2012.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.