UPDATE: Citigroup Downgrades Facebook to Neutral; Agressive Investment Mode
Citigroup downgraded Facebook (NASDAQ: FB) from Buy to Neutral and maintained a $30.00 price target.
Citigroup commented, "We view FB as a core long-term ‘Net stock. But with plans to invest heavily in the biz in 2013, and little expected contribution from new initiatives like Gifts or Graph Search, we don't see any near-term catalysts for the stock. And Mobile Ads appear to be cannibalizing Desktop, which further concerns us. We believe that FB can justify a 35x EPS multiple (given its high 30% EBITDA and EPS 3-year CAGR); but, with 2013 numbers coming down, we can't justify a higher multiple than that."
Facebook closed at $29.90 on Wednesday.
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