Facebook Trades Higher After Price Target Raise

Facebook Inc FB  shares are trading higher after getting a price target raise.

The Facebook Analyst: Deutsche Bank's Lloyd Walmsley maintains Facebook with a Buy and raised the price target from $355 to $385.

The Facebook Thesis: Walmsley expects the company to increase its first-quarter and 2021 estimates, reflecting more confidence in the ad revenue in the short term. This could be impacted by an increase of small businesses using Facebook to advertise as the economy reopens more.

According to a recent report from The Information, almost a fifth of Facebook’s employees are currently working in its augmented and virtual reality departments. Facebook’s VR gaming system, the Oculus, is seen as the most advanced VR system in its class right now.

 Coupled with the economy reopening, Walmsley said Facebook will see an increase in ad revenue from small businesses while focusing on the growth of its Oculus and VR gaming department.

FB Price Action: Shares of Facebook traded up 3% to $292.04 at publication time.