Needham & Company Maintains a 'Buy' on Facebook (FB) Zynga (ZNGA) Fallout Overdone

July 26, 2012 9:50 AM EDT Send to a Friend
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Price: $78.40 +3.01%

Rating Summary:
    44 Buy, 8 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 21 | Down: 43 | New: 52
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Needham & Company maintains a 'Buy' on Facebook (NASDAQ: FB) price target of $40.00.

Analyst, Laura Martin, said, "We think FB’s share price correction is overdone because: 1) Zynga (Nasdaq: ZNGA) attributed a piece of their shortfall to FB shifting its focus to discovery of new games and away from Zynga. Presumably FB is maximizing its own value in that decision-making process; 2) Zynga’s results reinforce our view that the FB platform has more economic negotiating leverage than any of the individual channels (ie, Zynga, Pandora (P-Buy), etc) and 3) We believe that how FB management handles its first earnings call and Q&A to Wall St (we are optimistic) will have more impact on the share price after the close tomorrow than Zynga/games revenue trends."

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 $29.34 yesterday.


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