Needham & Company Maintains a 'Buy' on Facebook (FB); Cutting PT as Mobile Monetization Slower than Expected.
Tweet Send to a FriendGet Alerts FB Hot Sheet
Price: $24.31 -2.99%
Rating Summary:
25 Buy, 14 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
25 Buy, 14 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade FB Now!
Needham & Company maintains a 'Buy' on Facebook (NASDAQ: FB) price target of $25.00 (from $40.00).
Analyst, Laura Martin, said, "FB, with some of the smartest employees on planet Earth, has been slow to monetize consumers' rapid shift from desktop to mobile, compared with peers. We project FB’s mobile revenue at approximately $150mm in 2012, out of $4.9B total. Yesterday, Mark Zuckerberg stated that FB’s biggest mistake was that it had burned 2 years committed to HTML5 rather than Native, which is needed for mobile: This suggests more time."
"We lower our FY12 and FY13 revenue and EPS estimates to account for slower revenue growth than we had expected previously. We now project that FB revenue will hit $4.9B (up 32% y/y) in FY12 and $6.2B (up 26% y/y) in FY13. Our new estimates for Operating EPS are $0.47 in FY12 and $0.58 in FY13."
"We are maintaining our Buy rating on FB because we continue to believe in the long-term option upside value of FB's global platform, especially for video and commerce applications, and the long term economic upside associated with its 900mm users."
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 $19.43 yesterday, with a 52 week range of $17.55-$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, Laura Martin, said, "FB, with some of the smartest employees on planet Earth, has been slow to monetize consumers' rapid shift from desktop to mobile, compared with peers. We project FB’s mobile revenue at approximately $150mm in 2012, out of $4.9B total. Yesterday, Mark Zuckerberg stated that FB’s biggest mistake was that it had burned 2 years committed to HTML5 rather than Native, which is needed for mobile: This suggests more time."
"We lower our FY12 and FY13 revenue and EPS estimates to account for slower revenue growth than we had expected previously. We now project that FB revenue will hit $4.9B (up 32% y/y) in FY12 and $6.2B (up 26% y/y) in FY13. Our new estimates for Operating EPS are $0.47 in FY12 and $0.58 in FY13."
"We are maintaining our Buy rating on FB because we continue to believe in the long-term option upside value of FB's global platform, especially for video and commerce applications, and the long term economic upside associated with its 900mm users."
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 $19.43 yesterday, with a 52 week range of $17.55-$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 Bumps Zumiez (ZUMZ) Numbers Up, But Remains on Sidelines
- UPDATE: MKM Partners Downgrades Alkermes (ALKS) to Sell
- Wells Fargo Boosts Price Target on Pandora (P), Maintains Outperform
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT ChangeRelated Entities
Needham & Company
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!
