UPDATE: SunTrust Raises PT on Facebook Ahead of Futures Products and Ads
In a reports published Friday, SunTrust analyst Robert S. Peck, CFA raised the 2014 price target for Facebook (NASDAQ: FB) from $40 to $55. Peck also raised his 2014 revenue estimate from $9.6B to $10.0B, and 2015 revenue estimates from $12.4B to $13.1B.
Analysts raised their revenue estimates to account for new and future products available to Facebook's massive user base. “As video ads, Instagram monetization and graph search roll out, we think our revenues could rise by ~$2b in 2017, or ~10%. Further, our EBITDA estimates also increase over by ~$1.0b in that timeframe providing further financial lift.”
The price target increase was a direct result from the analyst's new revenue estimates.
Facebook closed at $42.66 on Thursday, September 5th.
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