Facebook (FB): Targets Achievable Despite Ad Load Headwinds - Baird
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
Baird analyst, Colin Sebastian, reiterated his Outperform rating on shares of Facebook (NASDAQ: FB) another strong quarter overshadowed by 2017 growth commentary.
FB's strong 3Q16 top- and bottom-line beat was driven by advertising on core Facebook and ramping monetization of Instagram. On the call, management reiterated that moderating ad loads will create a headwind to growth next year, even as investment spending continues. Shares may trade lower on this outlook, but out-year targets are still achievable, largely driven by ad prices, ad engagement and user growth.
The analyst suggests adding to positions on a pullback.
Shares of Facebook closed at $127.17 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Jefferies Cuts Price Target on Workday (WDAY) to $71 Following 3Q
- Jefferies Cuts Price Target on Eros Int'l (EROS) to $18 Following Multi-Year Deal
- Jefferies Cuts Price Target on PG&E Corp. (PCG) to $65 Following Rate Case Decision
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change, Earnings
Related EntitiesRobert W Baird
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!