In a report published Thursday, Stifel Nicolaus analyst Jordan Rohan reiterated a Buy rating on Facebook FB, and raised the price target from $29.00 to $38.01.
In the report, Stifel Nicolaus noted, “Frankly, this was one of the strongest quarterly earnings reports for any Internet company we have seen since the financial crisis. An inflection quarter. Facebook realized a massive acceleration in ad revenue growth. Mobile revenue, which was non-existent before mid-2012, increased nearly 300 mm q/q (75% q/q) to $656mn and now comprises 41% of total ad revenue. In our view, this is the type of quarter that makes an investor step back to re-evaluate his or her opinion of a company. As we stated in our June upgrade note, we believe Facebook is both under-owned and under-estimated. We are raising our price target significantly to $38.01.”
Facebook closed on Wednesday at $26.51.
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