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

July 27, 2012 9:34 AM EDT
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Price: $127.92 +0.04%

Rating Summary:
    48 Buy, 9 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 22 | New: 54
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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.

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