Market Overview

UPDATE: Stifel Nicolaus Raises Facebook Target From $72 To $82, Says Advertisers See Opportunity

Share:
Related FB
Mobile Advertising's Next Barrier: Texts, iMessages, WhatsApp And More
AXT Trading At Its Highest Levels Since 2012; Northland Raises Price Target
Google Back In Twitter M&A Talk As AT&T, Disney Speculation Fades (Investor's Business Daily)

On Wednesday, Stifel Nicolaus raised the price target for Facebook (NASDAQ: FB) from $72 to $82 and maintained a Buy rating.

Analyst Jordan Rohan's channel checks “suggest that marketers view Facebook as a strategic communications platform,” and thus will “receive a significantly higher proportion of client' marketing budgets, particularly from sophisticated marketers” who personally track the effectiveness of Facebook ads.

As a result, Rohan is raising his revenue and earnings estimates, “adding 6-7% to 1Q14 revenue and EBITDA estimates.”

Rohan is “perplexed” by the WhatsApp acquisition, but believes the deal makes “strategic sense.” The analyst believes going forward “investors are likely to give the company leeway to take bigger risks, even at extended valuations.”

Investors are in agreement with the analyst as Facebook shares trade up 4 percent to $71.52 Wednesday afternoon. Rohan's $82 price target is 14 percent above the current price.

Latest Ratings for FB

DateFirmActionFromTo
Sep 2016JP MorganMaintainsOverweight
Sep 2016Loop CapitalInitiates Coverage onBuy
Sep 2016CitigroupMaintainsBuy

View More Analyst Ratings for FB
View the Latest Analyst Ratings

Posted-In: Analyst Color News Price Target Analyst Ratings

 

Related Articles (FB)

View Comments and Join the Discussion!