Facebook (FB) Price Target Lifted to $100 at SunTrust

SunTrust Robinson Humphrey analyst Robert Peck reiterated a Buy rating and boosted his price target on Facebook (NASDAQ: FB) to $100.00 (from $90.00) following Q1 results.

Peck’s Points. 1) ex FX ad revenue growth of ~55% y/y (-5% q/q) vs. 58% in 4Q - pricing remained robust. 2) TAM expands as Facebook’s arsenal of services achieve higher levels of utility for users and drive time spent across various media (messaging, pictures, videos, content discovery, search); 3) Operating margin fell 400bps ex FX to ~55% with costs up 57% driven by R&D and headcount (+48%); 4) High-end of spending guidance lowered to 60% from 65%; and 5) Investments in targeting, measurement and ad formats (video, dynamic ads and buy button) set stage for strong growth in 2015. We maintain our Buy rating and raise our price target to $100 from $90 based 20x EV/ EBITDA and 35x PE, which equates to growth adjusted multiples of 0.5x EV/ EBITDA/growth, 0.5x EV/EBITDA/Rev growth, and ~1x PEG.

The firm is adjusting for 1Q results, FX and guidance, they now expect 2Q, FY2015 and FY2016 revenue/EBITDA/EPS of $3.9B/$2.4B/$0.46, $17B/10.5B/$1.97, and $22.9B/$14.9B/$2.70.

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 $84.63 yesterday.

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