Cowen Boosts PT on Facebook (FB) to $145 Following 'Breakthrough' Q1 Results
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Rating Summary:
46 Buy, 17 Hold, 2 Sell
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Up: 13 | Down: 10 | New: 11
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Cowen and Company lifts its price target on Outperform-rated Facebook (Nasdaq: FB) from $140 to $145 following Q1 results issued Wednesday night.
Analyst John Blackledge commented, FB delivered the break-through results of 1Q16 earnings thus far with revs +2% / EPS +17% vs. our forecasts. FB is clearly taking ad share, driven by its user scale, strong engagement and relevant ads. The ad revenue growth was driven largely by Mobile, Video and Instagram.
Cowen updated certain estimates: Mgmt. expects the key drivers of strong ad growth to continue throughout '16, but noted some caution related to i) Tougher y/y adv comps given strength in ‘15, and ii) Headwinds in the Payments/Other biz. In terms of expense outlook, mgmt. reiterated non-GAAP opex +45-55% y/y in ’16, despite +41% in 1Q, while capex should come in near the high end of its FY capex guide ($4.0-$4.5BN). We raised '16-'21 estimates (see table on p. 4) given the beat in the quarter, while earnings move slightly higher due to a lower tax rate as FB implemented its int'l tax structure.
For an analyst ratings summary and ratings history on Facebook click here. For more ratings news on Facebook click here.
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