UPDATE: BTIG Downgrades Facebook to Sell on Cost Growth

BTIG downgraded Facebook

from Neutral to Sell and established a $22.00 price target. BTIG said, "We are downgrading FB to a SELL rating with a $22 target price. Our $22 one-year price target on FB shares is based on 13x estimated 2014 EBITDA, which equates to 35x 2014E FCF. While we are raising our revenue estimates, we are lowering our EBITDA forecasts due to the cost growth at Facebook. More importantly, our estimates are modestly below Wall Street consensus expectations for 2013 and more significantly below consensus in subsequent years." Facebook closed at $27.80 on Monday.