Bank of America Raises Facebook's Price Objective on 'Best Beats in the Sector'

Following Facebook's (NASDAQ: FB) earnings release on Wednesday, Bank of America analyst, Justin Post issued a note in which he raised his price objective on the company from $84 to $92 and reiterated a Buy rating.Post began by noting that at $2.91 billion and $0.42, Facebook's results came in solidly above the consensus estimate for $2.81 billion in revenue and $0.32 EPS. Post noted that the company suggested Instagram monetization, video autoplay, Audience Network, and search are still in the early stages and the street should expect the revenue contribution from these areas to be small in the near-term. However, Post believes these are all "big opportunities" for Facebook and will "kick in when needed". Looking forward, Post is expecting 62% and 38% ad revenue growth in 2014 and 2015. In conjunction with this, he has raised his 2014 - 2016 non-GAAP EPS estimates from $1.54, $2, and $2.50 to $1.68, $2.19, and $2.85.