UPDATE: Raymond James Downgrades Facebook on Limited Upside Potential
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
|Apr 2016||JP Morgan||Maintains||Overweight|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.