Facebook (FB) PT Raised to 'Street High' $385 at Deutsche Bank

(Updated - March 29, 2021 6:57 AM EDT)

Deutsche Bank analyst Lloyd Walmsley raised the price target on Facebook (NASDAQ: FB) to a "Street High" $385.00 (from $355.00) while maintaining a Buy rating.

Walmsley said they are increasing 1Q and 2021 estimates for Facebook reflecting more confidence on the back of positive feedback from the ad community, multiple encouraging data sets on ad prices and spending trends, delays to Apple iOS privacy changes and positive recent commentary from FB's CEO.

"We think investor focus is starting to shift away from fears around iOS changes towards a continued ad recovery and benefits from more eCommerce activity shifting into Facebook's platform," Walmsley commented. "In addition to higher estimates, some fading fears around overhangs can drive a return to FB's multiple premium to the S&P 500 (at parity today vs. a historical 20% premium), driving a catch-up trade in FB shares that have lagged YTD. In this note we (1) review some positive ad data sets; (2) update our eCommerce opportunity analysis showing a path to $33B in eCommerce related transactional and ad revenue over the medium to longer term; and (3) we update our Instagram Reels bull case math, showing a path to $21B in revenue. We would add to positions as we see a catalyst path that also includes benefits from the largest round of stimulus checks to date, more tests of non-skippable Stories ads, and the potential for FB to start monetizing Reels. We reiterate our Buy rating on Facebook shares and increase our target price to $385 (from $355 previously)."

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