Facebook's (FB) Price Target Raised to $125 at FBN

FBN Securities maintained an Outperform rating on Facebook (NASDAQ: FB) and raised its price target to $125.00 (from $110.00). The change follows strong Q3 results. Analyst Shebly Seyrafi said Instagram is starting to become more material.

"Our channel checks indicate that FB should experience very strong growth from Instagram starting this quarter. A recent Pew Research survey (Aug. 19, 2015) noted that usage at Instagram and Pinterest doubled since 2012, with usage at Instagram growing to 28% of online adults in 2015 from 13% in 2012, while usage at Facebook grew more modestly (from 67% in 2012 to 72% in 2015). Considering that the great majority of FB’s revenue last quarter was driven by Facebook and not Instagram, adding Instagram to the mix should be a material catalyst to revenue growth and share outperformance over the next two years. eMarketer in July predicted that Instagram revenue could reach $2.81B in 2017, but we estimate that this revenue could be even higher as we model $3.61B (15% of total FB ad revenue) in Instagram revenue that year," said Seyrafi.

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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