Deutsche Bank Upgrades Facebook (FB) to Buy on Revenue Momentum

January 14, 2013 6:44 AM EST
Get Alerts FB Hot Sheet
Price: $127.92 --0%

Rating Summary:
    48 Buy, 9 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 23 | Down: 31 | New: 34
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Deutsche Bank upgraded Facebook (NASDAQ: FB) from Hold to Buy with a price target of $40.00 (from $24.00).

The firm said FB has more revenue momentum than any other company they cover heading into 2013. They said Mobile Newsfeed Ads are the game-changer and the ramp-up is coming much faster than expected. In addition, they see several new catalysts emerging.

Deutsche Bank said ad revenue in 2013 should grow 40%, well above views. The firm said newsfeed revenue of $200 million in Q312, could be $800 million per quarter exiting 2013.

At tomorrow's event, the firm notes speculation of a new FB search. While the firm doesn't think the company is trying to index the broader web (yet), it is trying to make navigation on-site much more seamless.

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 $31.72 yesterday.

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