UPDATE: Wedbush Raises PT on Facebook on Multiple Positive Factors
In a report published Wednesday, Wedbush analyst Michael Pachter reiterated an Outperform rating on Facebook (NASDAQ: FB), and raised the price target from $39.00 to $49.00.
In the report, Wedbush noted, “Maintaining our OUTPERFORM rating, but raising our price target to $49 from $39 to reflect market conditions, improving mobile monetization, and the untapped video advertising opportunity. We note that the share prices of many of the companies included in Facebook's Internet peer group have appreciated significantly in recent months. Our revised price target reflects a P/E multiple of 50x our FY:14 EPS estimate of $0.98. We believe a premium multiple is warranted given that Facebook is just beginning to realize its vast monetization potential. In addition, we expect the company to begin to display the significant operating leverage inherent in its business model once it exits its high-growth stage.”
Facebook closed on Tuesday at $45.07.
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