Facebook (FB) Is Facing The Beginning Of Many Changes To Consumer Data Regulation, 10% Valuation Risk - Oppenheimer

Oppenheimer analyst Jason Helfstein reiterated an Outperform rating and $195.00 price target on Facebook (NASDAQ: FB) but notes that there are numerous legal changes coming to consumer personal data both domestically and internationally that could impact the company by increasing administrative costs or possibly increase regulation.

Effective January 1, 2020, California Consumer Privacy Act of 2018 (CCPA) guarantees strong privacy protection. CA's definition of personal information stretches to include any information identifying a person, including anything linked or associated with their household. While GDPR applies individual rights to the individual person, CCPA extends to households and organizations or groups of people. Addionally, CCPA requires businesses provide a clear, conspicuous link on their website, “Do Not Sell My Personal Information” and includes a "Right to Access" which enables consumers to inquire about the type of data a business has on them, request a description of how the data was collected, how categories are defined, subdivided, organized and distributed to third parties.

While the analyst did not reduce his PT or change the rating, he did note the possibility of a 10% risk to the share price near term stating "On valuation, shares now trade in-line with GOOG, but above the mid-teens discount of late 2018, suggesting ~10% multiple risk near term".

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 $164.65 yesterday.

You May Also Be Interested In

• Jefferies Downgrades Enphase Energy (ENPH) to Hold, 'Still Muddling Through'
• Day One Biopharmaceuticals (DAWN) PT Raised to $38 at Jones Trading on OJEMDA approval, sees $900M peak sales
• JPMorgan First Take on Biogen (BIIB)