SunTrust Robinson Humphrey Maintains Bullish View on Facebook (FB) Despite Spend Guidance Surprise

SunTrust Robinson Humphrey analyst Robert Peck reiterated a Buy rating and $90 price target on Facebook (NASDAQ: FB) following results.

Peck's key points: 1) 3Q bested consensus by 3%/8% top/bottom-line with: ad revenue up 11% Q/Q driven by mobile, op margin better than consensus by 150 bps, and MAUs/DAUs/engagement all solid. 2) 4Q revenue guided generally in-line. 3) But the main takeaway is guidance for much higher spending in 2015 as the company accelerates investment.

2014 revenue/EBITDA goes to $12.4B(+57%)/$7.9B. 2015 goes to $17.1B(+38%)/$10.4B.

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 $80.77 yesterday.

You May Also Be Interested In

• Cleveland Research Upgrades Dynatrace Inc. (DT) to Buy, 'optimism underlying fundamentals are likely to support upside'
• CSX (CSX) PT Lowered to $44 at UBS
• Bank First National Corp. (BFC) PT Lowered to $87 at Piper Sandler