Nomura Securities Maintains a 'Buy' on Facebook (FB); Cutting PT and Estimates on Growing Pains

July 27, 2012 9:34 AM EDT Send to a Friend
Get Alerts FB Hot Sheet
Price: $77.62 --0%

Rating Summary:
    43 Buy, 8 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
Trade FB Now!
Join SI Premium – FREE
Nomura Securities maintains a 'Buy' on Facebook (NASDAQ: FB) price target of $31.50 (from $40.00).

Analyst, Brian Nowak, said, " Last night FB reported 2Q:12 revenue of $1.18bn, ~3% below us, but 2% above the Street. Two-thirds of the revenue miss vs. us was driven by lower-than-expected advertising while the other third was driven by lower-than-expected payments revenue. Global user growth was relatively in-line with our expectations, but user monetization drove the shortfall as ad revenue per user fell 2% YoY, worse than our expectation for it to be flat and worse than the ~0.7% growth in 1Q:12. We continue to like FB on improved, long-term monetization. That said, given the near-term teeth-cutting and added timing uncertainty, we are reducing our 2014E target EV/EBITDA multiple and PT." (Fy13 EPS estimate lowered from $0.58 to $0.52)

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.


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change

Related Entities

Nomura

Add Your Comment