Wells Fargo Likes Facebook's (FB) New Smartphone Strategy

April 5, 2013 10:00 AM EDT
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Price: $127.87 -0.37%

Rating Summary:
    48 Buy, 9 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 35 | Down: 31 | New: 11
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Wells Fargo today maintained an Outperform rating on Facebook (NASDAQ: FB) with a price target of $36 to $39. Yesterday Facebook revealed its new Facebook Home launcher app designed to enhance social networking features on Android phones. Previously CEO Mark Zuckerberg downplayed the possibility that Facebook would manufacture its own phone, and now it is clear why.

Commenting on the news, analyst Jason Maynard said, "We see Home as a new chapter in Facebook's evolution into a mobile first company."

"With Home, we see an approach that is neither device nor operating system. We like the logic of a software-driven strategy rather than a device approach. In many ways Home resembles a PaaS personalization tool more than mobile app. In our view this approach is likely to appeal to many of Facebook's one billion+ members, while avoiding device/platform lock-in," said Maynard.

For an analyst ratings summary and ratings history on Facebook (NASDAQ: FB) click here. For more ratings news on Facebook click here.

Shares of Facebook closed at $27.07 yesterday.

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