Wedbush Reiterates an 'Outperform' on Facebook (FB); Raising Revenue Estimates

July 27, 2012 9:19 AM EDT
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Price: $128.93 +1.49%

Rating Summary:
    49 Buy, 8 Hold, 1 Sell

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    Up: 24 | Down: 17 | New: 14
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Wedbush reiterates an 'Outperform' on Facebook (NASDAQ: FB) price target of $35.00 (from $44.00).

Analyst, Michael Pachter, said, "Q2 EPS beat from strong advertising revenue and better-than-expected tax rate...The revenue upside did not translate into earnings upside, as the company increased its costs in order to invest in future growth...We are increasing our FY:12 estimate for revenue to $4.91 billion from $4.75 billion to reflect better-than-expected advertising revenue in Q2, but lowering our EPS estimate to $0.41 from $0.50 to reflect higher levels of spending in the second half of the year, including on R&D and infrastructure...Well-positioned to capture additional advertising market share."

FY12 EPS estimate cut from $0.50 to $0.41 and FY13 from $0.65 to $0.55. However, Wedbush raises FY12/13 revenues to $4.907B/$6.023B.

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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