Nomura Securities Maintains a 'Buy' on Facebook (FB); Cutting PT and Estimates on Growing Pains
Tweet Send to a FriendGet Alerts FB Hot Sheet
Price: $25.06 -0.4%
Rating Summary:
25 Buy, 14 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Rating Summary:
25 Buy, 14 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Trade FB Now!
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, with a 52 week range of $25.52-$42.99.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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, with a 52 week range of $25.52-$42.99.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Jefferies Lifts Numbers on Diana Shipping (DSX) Post Q1
- Hewlett-Packard (HPQ) Q2 Performance Wins Praise on Wall Street; Jefferies Raises to Hold
- Deutsche Bank Upgrades Seagate (STX) to Buy; Sanmina (SANM) Cut to Sell, Flextronics (FLEX) & Fabrinet (FN) Cut to Hold
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT ChangeRelated Entities
Nomura
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
