UPDATE: Goldman Sachs Lowers PT on Facebook

Goldman Sachs has published a research report on Facebook

and has lowered its price target from $42 to $37 per share. In the report, Goldman Sachs wrote, "Due to movements in the comp group share prices over the past few months, we are adjusting our P/FCF multiple to 65X from 80X and our EV/EBITDA multiple to 20X from 25X. As a result, we are lowering our 12 month price target on Facebook from $42 to $37 (equal weights of DCF, P/FCF, EV/EBITDA). Our earnings and revenue estimates remain unchanged. At $23, Facebook is trading at 13x our CY13 EV/EBITDA forecast, which compares to our comp group mean of 25X. With the next lockup ending soon, coupled with the market's allergy to supply, we would expect the shares to remain volatile over the next few months. That said, we believe the significantly higher CPMs associated with its new advertising initiatives will help to drive uplift in overall CPMs over time." Goldman Sachs maintained its Buy rating on Facebook, which closed Friday at $22.86.