Facebook Is The Broadest, Deepest Play On The Global Advertising Market
Given the “growth opportunity, competitive moat and ability to take share in the advertising market,” Loop Capital’s Blake Harper believes Facebook Inc (NASDAQ: FB) deserves a premium valuation.
Harper initiated coverage of the company with a Buy rating and price target of $165.
“Facebook has one of the most effective advertising platforms available and we expect it to continue to take share in the $800 billion global ad market,” the analyst mentioned.
Harper believes the future monetization potential of WhatsApp, Messenger, Instagram, along with video, VR and AI applications, positions Facebook well for long-term growth.
The analyst expects the company to be able to grow revenues at a CAGR of 35 percent over the next three years, with EBITDA margins of more than 60 percent.
Broadest, Deepest Play
In fact, Harper believes Facebook is the “[b]roadest, deepest play on the worldwide advertising market” with 1.7 billion monthly active users (MAUs) as of Q2, including more than 1 billion mobile daily active users (DAUs).
In addition, Facebook Live appears all set to capture one of the most rapidly growing media formats.
“We expect VR to eventually be ubiquitous and for Facebook to be a market leader with its Oculus VR headset and ecosystem,” the analyst went on to say.
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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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