Wall Street 'Likes' Facebook (FB)
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Price: $25.76 --0%
Rating Summary:
25 Buy, 14 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 20 | New: 16
Rating Summary:
25 Buy, 14 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 20 | New: 16
Trade FB Now!
As Facebook's (Nasdaq: FB) 40-day IPO quiet period has no-so-quietly ended, underwriters were free to release their recommendations on the stock Wednesday. So far, 17 firms have launched new coverage on the social media giant this morning, according to StreetInsider.com's Rating Insider. The ratings have come in mixed, with some seeing large upside from current levels, and others seeing shares as overvalued.
Including analyst ratings from non-underwriting banks, there are now 17 buy ratings, 14 Neutral ratings and two Sell ratings on Facebook. The overall rating is 'Neutral' and the average price target is $38.27.
Analysts at Goldman Sachs started coverage at 'Buy' with a $42 price target, suggesting 27 percent upside potential. The firm said Facebook will dominate the next phase of the Internet and maintain high growth rates. Goldman believes large brand advertisers are beginning to adopt more premium products, driving average CPM higher over time. On worries about mobile, Goldman sees this as an opportunity versus a headwind. "Facebook has only just begun to show ads on mobile devices and with our view that they will command a premium CPM given their enhanced social context and potential for geolocation, we estimate Facebook could generate roughly an incremental $500mn in 2013 from mobile usage replacing desktop time spent," the analyst said.
Oppenheimer launched coverage with an 'Outperform' rating and $41 price target. The firm believes users upload more personal information, the company's competitive position will be increased. Oppenheimer forecasts 2011-2013 revenue, EBITDA and non-GAAP EPS growth of 30 percent, 31 percent, and 32 percent, respectively.
On the opposite side of the trade, BMO Capital initiated coverage with an 'Underperform' rating and $25 price target, suggesting 24 percent downside from Tuesday's close.
Another interesting rating was from Morgan Stanley, the lead underwriter of the IPO which caught heat for botching the deal and lowering estimates days before the debut. The firm started coverage with an Overweight rating and $38 price target. Interestingly, the firm's price target represents the price Facebook was brought to the market at.
After running up in anticipation of the ratings, shares of Facebook are down 2.1 percent to $32.40 early Wednesday.
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Including analyst ratings from non-underwriting banks, there are now 17 buy ratings, 14 Neutral ratings and two Sell ratings on Facebook. The overall rating is 'Neutral' and the average price target is $38.27.
Analysts at Goldman Sachs started coverage at 'Buy' with a $42 price target, suggesting 27 percent upside potential. The firm said Facebook will dominate the next phase of the Internet and maintain high growth rates. Goldman believes large brand advertisers are beginning to adopt more premium products, driving average CPM higher over time. On worries about mobile, Goldman sees this as an opportunity versus a headwind. "Facebook has only just begun to show ads on mobile devices and with our view that they will command a premium CPM given their enhanced social context and potential for geolocation, we estimate Facebook could generate roughly an incremental $500mn in 2013 from mobile usage replacing desktop time spent," the analyst said.
Oppenheimer launched coverage with an 'Outperform' rating and $41 price target. The firm believes users upload more personal information, the company's competitive position will be increased. Oppenheimer forecasts 2011-2013 revenue, EBITDA and non-GAAP EPS growth of 30 percent, 31 percent, and 32 percent, respectively.
On the opposite side of the trade, BMO Capital initiated coverage with an 'Underperform' rating and $25 price target, suggesting 24 percent downside from Tuesday's close.
Another interesting rating was from Morgan Stanley, the lead underwriter of the IPO which caught heat for botching the deal and lowering estimates days before the debut. The firm started coverage with an Overweight rating and $38 price target. Interestingly, the firm's price target represents the price Facebook was brought to the market at.
After running up in anticipation of the ratings, shares of Facebook are down 2.1 percent to $32.40 early Wednesday.
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