UPDATE: Capstone Starts Facebook (FB) at Hold as Premium Multiple Not Justified

(Updated - May 25, 2012 11:19 AM EDT)

Capstone Investments' Rory Maher initiated coverage on shares of Facebook (NASDAQ: FB) with a Hold rating Friday morning. The analyst believes the stock's premium multiple is not warranted.

Trading at 24x estimated 2013 EV/EBITDA "assumes significant growth from new businesses..." even as the company has yet to optimize its display business, Maher said. Moreoever, the analyst argued Facebook's venture into mobile advertising will likely weigh on margins heading into next year. Maher sees the company's credit products as eventually becoming a driver of sales, and expects Facebook to expand this offering to the payments segment.

Facebook shares are down more than 3 percent to around $31.98 at last check.

For an analyst ratings summary and ratings history on Facebook click here. For more ratings news on Facebook click here.

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