Facebook (FB) Named Top 2017 Internet Pick at Oppenheimer

Oppenheimer analyst Jason Helfstein named Facebook (NASDAQ: FB) its Top 2017 Internet Pick. The firm reiterated an Outperform rating and price target of $144.

Helfstein said with the stock down 8% from its 52-week high, they see multiple reasons to be positive: 1) shopping ads gained significant traction during the holidays; 2) FB usage surged ahead of US presidential election; and 3) Instagram momentum is accelerating, driven by product innovation.

Meanwhile, the stock is trading at an attractive valuation, in their view, at 14x/11x ’17E/'18E EBITDA vs. 30% expected growth over the next two years.

The firm also raised 4Q:16E/‘17E revenue by 2%/3% to reflect the strength of DPAs & Instagram, while EBITDA estimates are largely unchanged, with conservative estimates for R&D & marketing spending

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 $123.41 yesterday.

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