BMO Capital Downgrades Facebook (FB) to Market Perform; Results 'Good' Not 'Great'
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Price: $45.08 -0.07%
Rating Summary:
46 Buy, 17 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
46 Buy, 17 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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BMO Capital downgraded Facebook (NASDAQ: FB) from Outperform to Market Perform with a price target of $32.00 (from $32.00) following Q4 results.
"We don't like moving around ratings this quickly, and we thought the quarter was perfectly fine; however, we don't yet have the thesis to raise our target into the mid- to high-$30s," the firm comments Dan Salmon. "Moreover, contrary to consensus, we do not think 2013 stock performance will be dictated by "mobile monetization"; rather, we think that has driven the stock's move over the past two to three months and in-line mobile results this quarter suggest that catalyst is complete (for now). For FB stock to go higher, we believe new catalysts must emerge. We had been looking to Gifts for help, but management tapped-down expectations, and we have lowered our revenue estimates for it. Beyond a pullback in the stock, we would look to get more proactive again if (1) we get more details about video ad products that were hinted at on the conference call; (2) expectations for Gifts improve due to faster country rollout or product improvement, like wedding registries; or (3)Instagram monetization begins."
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 $31.24 yesterday.
"We don't like moving around ratings this quickly, and we thought the quarter was perfectly fine; however, we don't yet have the thesis to raise our target into the mid- to high-$30s," the firm comments Dan Salmon. "Moreover, contrary to consensus, we do not think 2013 stock performance will be dictated by "mobile monetization"; rather, we think that has driven the stock's move over the past two to three months and in-line mobile results this quarter suggest that catalyst is complete (for now). For FB stock to go higher, we believe new catalysts must emerge. We had been looking to Gifts for help, but management tapped-down expectations, and we have lowered our revenue estimates for it. Beyond a pullback in the stock, we would look to get more proactive again if (1) we get more details about video ad products that were hinted at on the conference call; (2) expectations for Gifts improve due to faster country rollout or product improvement, like wedding registries; or (3)Instagram monetization begins."
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 $31.24 yesterday.
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