UPDATE: BMO Capital Markets Downgrades Facebook to Market Perform, Reiterates $50 PT on Strong 3Q Results, Lack of Social TV Visibility

In a report published Thursday, BMO Capital Markets analyst Daniel Salmon downgraded the rating on Facebook FB from Outperform to Market Perform, but reiterated the $50.00 price target. In the report, BMO Capital Markets noted, “We are downgrading FB to Market Perform from Outperform. 3Q results were strong. Non-GAAP EPS were $0.25, ahead of our $0.17 estimate and the Street's $0.19. Revenue of $2.016B was ahead of our $1.894B and the Street's $1.911 billion. Mobile ad revenue of $881mm was well ahead of our $773mm estimate, while total ad revenue increased 66% yoy. Worldwide price per ad accelerated considerably, up 42% yoy, versus 13% in 2Q and 3% in 1Q; global impressions were up 16%, but US impressions were down 8%. Management noted that ads as a percentage of NewsFeed content should stabilize, which spooked the stock after-hours. But this is not our concern.” Facebook closed on Wednesday at $49.01.