UPDATE: Rosenblatt Starts Facebook (FB) at Buy

October 16, 2018 7:43 AM EDT
Get Alerts FB Hot Sheet
Price: $352.12 +1.78%

Rating Summary:
    51 Buy, 12 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 17 | Down: 5 | New: 36
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(Updated - October 16, 2018 8:55 AM EDT)

(updated ot add analyst name and comment)

Rosenblatt analyst mark Zgutowicz initiates coverage on Facebook (NASDAQ: FB) with a Buy rating and a price target of $213.00.

The analyst comments "Trading at nearly a ~18.5x CY19E consensus EPS, less than 1x consensus growth expectations thru CY20E, there appears to be little confidence expectations will be met. We are in that camp and model CY19E EPS of $7.63, ~8% below consensus expectations. We believe this earnings level more accurately reflects prolonged News Feed pricing weakness and greater safety and security costs through Q219E. With that said, we see this anticipated shortfall priced in the shares and are buyers of the stock in front of the Q3 print. While CY19 will be a year of rebuild, we see a bottoming for News Feed (NF) fatigue and enough light ahead with new product innovation and ad unit optonality including with Instagram and Watch longer-term."

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 $154.66 yesterday.

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