UPDATE: Nomura Initiates Coverage on Facebook
In a report published Wednesday, Nomura analyst Anthony DiClemente initiated coverage on Facebook (NASDAQ: FB) with a Buy rating, establishing a $65.00 price target.
According to the report, the analysts believe FB will remain the social media leader, benefiting from core tailwinds from the advertising economy, the most notable of which is demand for effective mobile ad products.
“Our positive outlook on FB is based on: 1) Core News Feed price-per-ad will increase at a faster rate than the Street expects; 2) Instagram represents a significant forward monetization opportunity; and 3) International user growth drivers far outweigh a slowdown in engagement among younger US teens,” the report noted.
FB closed Tuesday at $57.74.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.