Market Overview

Raymond James Upgrades Facebook Ahead Of Q1 Earnings

Share:
Raymond James Upgrades Facebook Ahead Of Q1 Earnings

Facebook, Inc. (NASDAQ: FB) is scheduled to report fourth-quarter results after Wednesday's market close which should come in ahead of expectations, according to Raymond James.

The Analyst

Aaron Kessler upgraded Facebook's stock from Outperform to Strong Buy with a price target lifted from $230 to $270.

The Thesis

Raymond James' first-hand checks with advertising and marketing agencies suggest Facebook will report revenue and EPS upside in its earnings report. Specifically, the marketing agency Merkle hinted to a 15% year-over-year acceleration in Facebook spend. Digital advertising platform Kenshoo indicated total social ad spend grew 24% year-over-year.

See Also: What'sApp At Facebook: Q4 Earnings Puts Focus On Election, Ad Revenue

Meanwhile, Kessler said a survey of 465 internet users found Facebook remains the "most widely used" app at 78%, followed by Instagram at 73%. Facebook was also ranked as the most important app among the 13 to 45 age group, followed by Instagram. In addition, Facebook Marketplace was found to be the most popular online local marketplace according to the survey. This bodes well for the company's ability to show it can tap new revenue streams.

Another factor that prompted the analyst to turn even more bullish on Facebook's stock is moderating privacy concerns amid new user controls.

Price Action

Facebook's stock traded higher by 1% at $219.66 at time of publication. Analysts estimate the company to report earnings of $2.53 per share on revenue of $20.88 billion.

Latest Ratings for FB

DateFirmActionFromTo
Feb 2020Pivotal ResearchDowngradesHoldSell
Jan 2020OppenheimerMaintainsOutperform
Jan 2020B of A SecuritiesReiteratesBuy

View More Analyst Ratings for FB
View the Latest Analyst Ratings

Posted-In: Aaron Kessler facebook Marketplace Instagram Raymond JamesAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga

 

Related Articles (FB)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
WTTRB. Riley FBRMaintains13.0
SNDB. Riley FBRMaintains4.0
SBGIB. Riley FBRMaintains35.0
RUBIB. Riley FBRMaintains13.5
GNKB. Riley FBRMaintains14.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com