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Goldman Sachs Maintains a 'Buy' on Facebook (FB); Raising Estimates; More Positive Predisposition

July 27, 2012 9:31 AM EDT Send to a Friend
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Price: $76.86 -2.76%

Rating Summary:
    40 Buy, 8 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 12 | New: 33
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Goldman Sachs maintains a 'Buy' on Facebook (NASDAQ: FB) price target of $42.00.

Analyst, Heather Bellini, said, "After concerns that the company would fall short of 2Q expectations, Facebook delivered solid top line results...Ad revenue posted the big upside surprise, coming in at $992mn (+28% yoy) and well ahead of even the unadjusted consensus number of $948mn (adjusted $921mn)...Despite the big concern related to Zynga’s (Nasdaq: ZNGA) results, FB generated $192mn in payment revenue versus consensus of $198mn."

"As a result of monetization improvements, we now see CPM growth in 2012/2013 of 10%/13% (prior: 3%/5%). Because of this, we raised our 2012 revenue forecast from $4.85bn to $5.00bn (2013 from $6.59bn to $6.68bn). On the EPS front, we are now modeling 2012/2013 of $0.50/$0.65 (prior: $0.48/$0.64)."

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 $26.85 yesterday.

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