Topeka Lifts Q2 Estimates on Facebook, Sees Business as Remaining 'Fundamentally Strong'

Facebook FB shares are up nearly 2 percent Monday afternoon as traders and investors in the name are reacting to a couple items. In addition to a TechCrunch rumor Facebook will unveil a news reader on June 20th, comments and raised estimates in a note from Topeka Capital's Victor Anthony are impacting the price. Anthony believes Facebook's website and massive social platform continue to be "fundamentally strong." The analyst more or less shrugged at recent worries related to ads and usage by teenagers. Amid recent steps to work on the monetization of ads through streamlining and video, Anthony boosted his Q2 EPS and sales estimates on Facebook. The analyst suggested buying some Facebook shares given recent weakness on the heels of largely inline Q1 report May 1st. The stock is down nearly 17 percent since those results. Topeka maintains a Buy rating and $40 price target on shares of Facebook. With the stock last trading at $24.05, Anthony's price target implies potential upside of more than 66 percent.