Citigroup raised its rating on Facebook FB from Neutral to Buy but reduced its price target from $35 to $30.
Citigroup commented, "What investors have for the first time since the FB IPO is fundamentals acceleration WITH a reasonable valuation (30 P/E for 30% EPS growth). Further, two of the biggest FB risks (Zynga dependency and Mobile monetization) appear to have been down-sized. And we've still seen zero contribution from newer initiatives, eg gifts, FBX, etc. Yes, lockups loom, but we believe long-term investors can use weakness around said lockups as a way to leg into a fundamentals positive/valuation reasonable long."
Facebook closed at $19.50 on Tuesday.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in