Facebook (FB) Estimates Raised at Needham & Company Amid Strong Q3, Outlook
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Rating Summary:
46 Buy, 17 Hold, 2 Sell
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Up: 6 | Down: 3 | New: 1
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Needham & Company analyst Laura Martin reiterated a Buy rating and $115 price target on Facebook (NASDAQ: FB) following strong Q3 results and outlook.
Martin commented, "FB reported strong 3Q15 results with revenue of $4.5B (up 41% y/y and 2% above our estimate), and EPS of $0.57 (up 31% y/y and 17% above our estimate. Ad revenues grew 45% y/y, driven largely by video. FCF reached $1.4B in 3Q15. We raise our 4Q15 and 2016 estimates. The best things about FB’s 3Q15 (our view) were: 1) Instagram is creating new ad units, both stand-alone and bundled in wth FB ad inventory; 2) video momentum; 3) mobile usage growth; and 4) 17% longer engagement. We retain our Buy rating because we believe FB has a meaningful head start at solving key challenges for marketers, including: 1) mobile ad units; 2) following an individual across all digital platforms; 3) fraud prevention; 4) video ads; 5) global scale; and 6) geolocation targeting. We maintain our BUY rating and $115 target price."
The firm raised FY 2015 EPS from $2.00 to $2.14 and FY 2016 EPS from $2.70 to $2.81.
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 $103.94 yesterday.
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