Nomura Securities Starts Facebook (FB) at Buy; Only Eight Years Old and Already the Largest Player in Display

Nomura Securities initiates coverage on Facebook (NASDAQ: FB) with a Buy. PT $40.00.

Analyst, Brian Nowak, said, "We believe that Facebook’s (FB) industry-leading reach, engaged user base, and comprehensive user dataset will enable the company to continue to grow and take share in the display market. Uncertainties exist around FB’s ability to improve monetization; however, our analysis of strategies to improve results underscores the favorable risk/reward at current levels and the optionality for substantial long-term earnings upside as FB continues developing its still-young monetization model."

Nowak feels the current consensus is a little misconstrued, considering the lack of underwriting banks' estimates. Overall, he doesn't see Facebook's main revenue generator, display advertising, changing (85% of 2011 revs)

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 $31.60 yesterday.

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