In a report published Thursday, Jefferies analyst Brian Pitz upgraded the rating on Facebook FB from Hold to Buy, and raised the price target from $31.00 to $32.00.
In the report, Jefferies noted, “We upgrade FB to Buy as we think recent pressure on the stock has created a buying opportunity ahead of the expected July launch of video ads, which could be the company's next billion-dollar business. The val'n looks attractive at ~25x (ex-cash) our '14 Op EPS vs. a 30% CAGR, implying a reasonable 0.8x PEG. Longer-term, we expect FB will enjoy nice operating leverage as it deploys new ad products across its massive 1B+ user base.”
Facebook closed on Wednesday at $23.32.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.