Nomura Trims Numbers on Facebook (FB) Ahead of Q3 Report

Nomura Securities trimmed estimates and its price target on Buy-rated Facebook (NASDAQ: FB) from $31.50 to $27 ahead of third quarter results on 10/23.

"Facebook monetization remains a work in progress as the company continues developing new advertiser tools and offerings. Facebook Ad Exchange (FBX), launched in September, is the latest innovation that brings online re-targeting to Facebook. Initial advertiser feedback has been positive, as our checks indicate that FBX is leading to significantly higher advertising ROI and click-through rates," analyst Brian Nowak. "We expect FBX to be a material 2013 contributor, as our base case (even assuming FBX only ramps at the same rate as DoubleClick) implies it will add $450mn (or 9%) to FB 2013E ad revenue."

FY12E EPS goes down from $0.50 to $0.47; FY13E EPS from $0.52 to $0.49.

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 $19.52 yesterday.

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