UPDATE: Goldman Sachs Lowers PT to $35, Reiterates Buy on Facebook
Goldman Sachs maintained its Buy rating on Facebook (NASDAQ: FB) and lowered its price target from $37 to $35 following a solid quarter.
Goldman Sachs said, "With 3Q12 mobile sales growth estimated at 600% qoq to $153mn, we believe fears over FB's ability to profit from mobile will subside. As we expect the $4mn per day 3Q12 Sponsored Story run rate will continue to ramp in 4Q12, we are forecasting sales from these to come in at around $430mn, at the midpoint of our sensitivity analysis. Assuming the same 25%/75% desktop/mobile split, this would equate to qoq mobile sales growth of 115%. In 2013, if Sponsored Stories come in at the low end of our sensitivity range of $1.9bn it would represent growth of 180% yoy, versus right hand rail of $3.79bn, or +2% yoy growth."
Facebook closed at $19.50 on Tuesday.
Latest Ratings for FB
|Feb 2017||Pivotal Research||Downgrades||Buy||Hold|
|Jan 2017||Pacific Crest||Reinstates||Overweight|
|Jan 2017||Raymond James||Upgrades||Outperform||Strong Buy|
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