Facebook (FB) Could be Future Force in Streaming, Brean Capital Says

Brean Capital analyst Sarah Hindlian reiterated a Buy rating and $108 price target on Facebook (NASDAQ: FB) following news the company is hosting two HBO show premiers - "Ballers" and "The Brink." The analyst said while TV content hosting is still a ways off, it is increasingly a focus point for Facebook.

Hindlian commented, "As we have been discussing the past several months, we believe that Facebook has been working with broadcast networks and non-network original content providers in the television industry for over three years on the opportunity to host content on its core website. The intention is to drive timeline views and add users to the platform, while also solidifying its position as the “passport to the internet.” While our work to date has suggested general reluctance from TV networks, we believe that if ad dollars continue to shift to digital mediums, Facebook will be less the enemy of network TV, and more likely a potential partner in a blended advertising share model. Today’s news that Facebook is hosting the first episodes of HBO’s new shows “Ballers” and “The Brink” on its platform for free appears to be a sampler meant to drive subscriptions to HBO NOW, with the premier episodes including a Facebook call-to-action advertisement. While the economics are unknown, we view this as an early signal that Facebook sees its future including more original content, a trend worth investors following."

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 $87.88 yesterday.

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