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Facebook (FB) PT Lifted to $110 at Raymond James Into Q2 Print

July 27, 2015 8:06 AM EDT
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Price: $196.64 --0%

Rating Summary:
    46 Buy, 17 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 20 | Down: 14 | New: 22
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Raymond James analyst Aaron Kessler reiterated an Outperform rating and boosted his price target on Facebook (NASDAQ: FB) to $110.00 (from $90.00) ahead of Q2 results (07/29), saying they expected video to drive strong results.

"We maintain our positive view on Facebook and based on industry data points and our checks we expect upside to our/consensus ad revenue estimate of ~40% y/y or 13% q/q," Kessler commented. "Additionally, we expect strength from advertisers' adoption of video ads and dynamic product ads. We maintain our Outperform rating and increase our price target from $90 to $110 (22.5x 2016 EBITDA). We believe a higher multiple is warranted given our increased confidence and expectation for upside to FB estimates."

For the quarter, the firm is estimating 2Q revenues of $3.97 billion, slightly below consensus of $3.99 billion. They estimate advertising revenues of $3.74 billion (+40% y/y vs. 46% y/y in 1Q), mobile ad revenue of ~$2.77 billion (+67% y/y vs. +81% y/y in 1Q), daily active users (DAUs) of 968 million (+16.6% y/y vs. +16.7% y/y in 1Q), adjusted EBITDA of $2.46 billion (+25% y/y vs. +29% y/y in 1Q), and non-GAAP EPS of $0.49 vs. consensus of $0.47.

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 $96.95 yesterday.



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