Market Overview

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

Related FB
Walmart (WMT) Gets Instagram CEO and Founder on Board
LookSmart, Ltd. and Voltari Corp Pop And Drop On Facebook Inc Atlas News
Deal Frenzy: 2014 Sees Record M&A Volume (Fox Business)

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
Sep 2014NeedhamMaintainsBuy
Aug 2014Janney CapitalDowngradesBuyNeutral
Jul 2014BarclaysMaintainsOverweight

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...

Partner Network

Get Benzinga's Newsletters