Facebook (FB) Revenue Estimate Raised at Deutsche Bank Ahead of Earnings

Deutsche Bank analyst Lloyd Walmsley reiterated a Buy rating and $280.00 price target on Facebook (NASDAQ: FB) on the belief that the core resurgence, last quarter, will continue into 2020 and drive top line growth as well as multiple expansion.

The analyst stated "In 4Q, we see upside to advertising revenue (and increase our ad revenue growth to +25% ex-FX (from 24% previously and vs consensus of 24.2%), based on conversations
in the industry, with notable strength in Core Facebook. Our estimates reflect 24% headline ad revenue growth, or a 4.3ppt deceleration from 3Q, slightly ahead of guidance for mid to high-single-digit deceleration. We remain comfortable with above-consensus EBIT estimates as consensus S&M looks high. On the quarter, we think the key will be the revenue outlook for the slope of growth deceleration, commentary around core Facebook, an early look at the impact from OFA and potentially even CCPA, Stories ad efficacy/monetization, and any updates on eCommerce and/or other medium-term revenue opportunities such as messenger or Watch".

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 $221.69 yesterday.

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