UPDATE: Stifel Nicolaus Raises PT to $31 on Facebook on Improved Monetization
Stifel Nicolaus reiterated its Buy rating on Facebook (NASDAQ: FB) and raised its price target from $26 to $31.
Stifel Nicolaus commented, "Shares have risen 25% following the expiration of the 777mn share un-lock on November 14th, vs. a 5% increase in the SP500. We believe the trading pattern will shift from fear of massive selling to excitement over forced buying of shares by index funds when FB is added to the SP500. … FB is still taking its time with some initiatives, such as a rollout of its ad network and the full launch of its ad exchange (FBX). Higher ARPU is coming from gifts (e-Commerce) and advertising on the news feed (desktop and mobile); a stronger Euro currency adds to ARPU."
Facebook closed at $26.91 on Friday.
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