Facebook (FB) Ad Agency Call Takeaways - Mizuho

Mizuho Securities analyst James Lee reiterated a Buy rating and $210.00 price target on Facebook (NASDAQ: FB) after hosting an investor call on spending trends with a leading ad agency.

Key Takeaways:

(1) The agency data’s shows that FB spending growth declined by 10% QoQ and decelerated by 350bps YoY, tracking ahead of consensus

2) The agency expects IG shopping ads and IG Stories for DR to drive pricing leverage

3) Recent negative headlines on data security appear to have limited impact on advertiser spending.

The analyst stated "Maintaining our Buy rating as we are incrementally positive about the stock into the quarter. The stock is attractive at 8x 2021 EBITDA vs estimated growth CAGR of 21%, with a 50% rev/user upside on products yet to be fully monetized."

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 $178.08 yesterday.

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