Facebook (FB): Conservative Outlook Presents Opportunity - Suntrust

November 3, 2016 7:49 AM EDT
Get Alerts FB Hot Sheet
Price: $127.71 -0.13%

Rating Summary:
    48 Buy, 9 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 11 | Down: 22 | New: 54
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SunTrust Robinson Humphrey analyst, Bob Peck, reiterated his Buy rating on shares of Facebook (NASDAQ: FB) after reporting a very strong 3Q including continued growth in users, engagement, monetization, and margins.

However, 2017 guidance called for a “meaningful” revenue deceleration and “significant” investments that will likely weigh on investor sentiment until greater clarity is provided on magnitudes and costs vs. investment spending.

Taking all of this into account, 2017 estimates are only slightly changed with a ~20pt deceleration in revenue growth and ~$4B of expenses expected. The $142 PT implies ~22x FY18 P/E (<1x PEG).

For an analyst ratings summary and ratings history on Facebook click here. For more ratings news on Facebook click here.

Shares of Facebook closed at $127.17 yesterday.

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