UPDATE: J.P. Morgan Raises PT on Facebook on Expected Strong Advertising Traction
In a report published Thursday, J.P. Morgan analyst Doug Anmuth reiterated an Overweight rating on Facebook (NASDAQ: FB), and raised the price target from $44.00 to $53.00.
In the report, J.P. Morgan noted, “We are incrementally positive on Facebook shares as we believe advertising traction across both Mobile and Desktop continues to build into year-end and 2014. 2Q13 marked an inflection point in advertiser demand and ad quality for Facebook, which enabled the company to increase inventory while simultaneously realizing higher pricing. We believe that momentum in the ad platform continues as marketer feedback around Mobile, News Feed, and FBX continues to improve along with ROI. We are raising our Mobile and Desktop News Feed estimates going forward, and we project Mobile will surpass 50% of Facebook's ad revenue in 4Q13 and represent 60% of ad revenue in 2014. We reiterate our Overweight rating and are raising our price target from $44 to $53.”
Facebook closed on Wednesday at $45.04.
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