Facebook (FB) PT Raised to $94 at BMO Capital

BMO Capital analyst Daniel Salmon raised his price target on Facebook (NASDAQ: FB) to $94.00 (from $80.00) following Q2 results but maintained a Market Perform rating.

Salmon commented, "We have underestimated both 2015’s ad revenue growth and the continued improvement in sentiment, but neither has been too surprising. More surprising was the recent launch of the API program for Instagram, a notable change in the trajectory of monetization that we did not expect to occur at this level of MAUs (300mm+). It is a good reminder of how many levers Facebook has to pull and the flexibility it has to control timing. Messenger (with 2x+ as many MAUs as Instagram) is primed for non-advertising experimentation with gaming, paid messaging and payments/commerce enablement all regularly noted as opportunities. We’d expect on-demand/sharing economy elements to be successful; lending, cars, home services, retail delivery, and lodging are all thriving “sharing” models today. Back at Facebook, the focus remains on short-form video; while the rapid growth of views (4B+ per day) is impressive, it’s not a surprise considering the time spent. We’re watching for premium content partnerships (and ad revenue shares) and how much Facebook adopts sales practices familiar to TV buyers (reserved/upfront, audience guarantees, etc.)"

2016E non-GAAP EPS goes to $2.64 from $2.48.

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 $96.99 yesterday.

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