Oppenheimer Raises Price Target On Facebook To $100 On Higher Instagram Valuation & Lower Tax Assumptions

In a report published Wednesday, Oppenheimer analyst Jason Helfstein reiterated an Outperform rating on

, and raised the price target from $88.00 to $100.00. In the report, Oppenheimer noted, “We expect strong 4Q results, driven by better engagement and strong monetization. Consistent with recent qtrs, the company will likely beat its expense guidance resulting in higher margins, in our view. Checks suggest 4Q pricing +14% q/q and +21% y/y, with same-client spending +32% q/q and 33% y/y. This excludes video or Instagram. Organic reach is becoming more difficult, due to competition for newsfeed impressions, which is driving pricing. Right-rail ads now just two slots per page. Year-to-date 4Q US minutes increased 34% y/y, compared to +35% in 2Q and above our prior +31% estimate. We also see upside from increased video adoption. Raising target to $100 from $88 on increased Instagram valuation from higher member estimates and lower tax assumptions.” Facebook closed on Tuesday at $76.45.