UPDATE: Wedbush Reiterates Outperform Rating, Lowers PT on Facebook

In a report published Friday, Wedbush Securities reiterated its Outperform rating on Facebook (NASDAQ: FB), but lowered its price target from $44.00 to $35.00.

Wedbush noted, “In our view, Facebook's valuation should be based on its earnings potential. Unfortunately, we don't believe that Facebook's earnings in 2012 or 2013 will demonstrate that potential, particularly given management's decision to accelerate the pace of the company's investment in future growth. We have modeled roughly $1 billion per year in revenue growth in 2012 and 2013, but have modeled EPS growth of only roughly 25% to $0.55, suggesting that it will be at least 2015 before Facebook generates more than $1.00 in EPS.”

Facebook closed on Thursday at $26.84.

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