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BTIG Upgrades Facebook (FB) to Neutral on Accelerated Ad Units

November 26, 2012 9:17 AM EST Send to a Friend
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Price: $74.82 --0%

Rating Summary:
    40 Buy, 8 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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BTIG upgraded Facebook (NASDAQ: FB) from Sell to Neutral.

Analyst Richard Greenfield comments "With Facebook's payments revenue lever gone (thanks to Zynga's collapse), we felt Facebook was pulling too hard on its "main" advertising revenue lever and that it would be difficult to notably ramp ads beyond the Q3 2012 ad load. While we still feel like we know "how this will movie end" from cluttering the user experience with ads, Facebook has accelerated ad units (and likely revenues) even further on mobile devices in recent weeks. In turn, we believe the company will significantly exceed Q4 2012 expectations."

Q4 ad revenues are expected to increase 42%, with total revenues up 37% to $1.55 billion; Q4 US ad revenue estimated up 50% accelerating from Q3 2012′s y-o-y increase of 36%; Q4 EBITDA adjusted EBITDA up 18% $858 mm (ex-SBC and PT); 2013 total revenues of over $6 bn vs. prior est of $5.6 bn and adjusted EBITDA of $3.3 bn vs. prior est of $3.0 bn.

The firm also released a video to show ad load increase.

Video


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 $24.00 yesterday.




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