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UPDATE: Raymond James Downgrades Facebook on Limited Upside Potential

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In a report published Monday, Raymond James analyst Aaron Kessler downgraded the rating on Facebook (NASDAQ: FB) from Strong Buy to Outperform, but raised the price target from $38.00 to $56.00.

In the report, Raymond James noted, “While we maintain a positive bias on the shares, we are downgrading FB from Strong Buy to Outperform given the ~10% upside potential to our new price target. Our $56 price target (up from $38) is based on 19x our new 2015 EBITDA estimate. We maintain our positive fundamental view on Facebook and expect 3Q upside driven by strong traction with mobile advertising (estimate 23% q/q growth) as well as newer ad formats (i.e., Mobile App Install, Page Post Link ads), though would note the much more positive investor sentiment and heightened expectations going into 3Q (vs. negative sentiment ahead of 2Q).”

Facebook closed on Friday at $51.04.

Latest Ratings for FB

DateFirmActionFromTo
Dec 2014CitigroupMaintainsBuy
Dec 2014MKM PartnersInitiates Coverage onBuy
Nov 2014Hilliard LyonsInitiates Coverage onLong-term Buy

View More Analyst Ratings for FB
View the Latest Analyst Ratings

Posted-In: Aaron Kessler Raymond JamesAnalyst Color Downgrades Analyst Ratings

 

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