Market Overview

UPDATE: Citigroup Raises Price Target for Facebook, View as 'Best Growth Story in the Internet Sector'

Share:
Related FB
CNBC's Stock Pops & Drops From January 29
Analysts Are Baffled That Google 'Can't Beat An Earnings Report'
Stock Market News for January 30, 2015 - Market News (Zacks)

In a note released Tuesday, Citigroup analyst Mark May reiterated the firm's Buy rating on Facebook (NASDAQ: FB) and raised the price target from $70 to $85.

In raising the price target May looked to three key points: the WhatsApp acquisition, ads on Instagram, and video ads on Facebook.

Looking to 2014, May outlined four themes he believes will continue to drive growth: 1) continued RPM (revenue per thousand ad impressions, or monetization) gains due to the mix shift toward higher valued News Feed ads and from increases in like-for-like ads from improved targeting & analytics; 2)continued growth in mobile app adds as installs remain in high demand and adoption of app engagement ads; 3) monetization of Instagram (e.g., see recent $100mn contract with Omnicom); 4)wider rollout of video ads on Facebook and Instagram, which they believe could have 2x-plus eCPMs than standard ads.

At last check, Facebook was trading down 1 percent at $71.31.

Latest Ratings for FB

DateFirmActionFromTo
Jan 2015Stifel NicolausMaintainsBuy
Jan 2015CRT CapitalMaintainsBuy
Jan 2015JefferiesMaintainsBuy

View More Analyst Ratings for FB
View the Latest Analyst Ratings

Posted-In: Citigroup Mark MayAnalyst Color Price Target Reiteration Analyst Ratings

 

Related Articles (FB)

Around the Web, We're Loving...

Get Benzinga's Newsletters