Facebook (FB) Outperform Reiterated at FBN

FBN Securities maintained an Outperform rating on Facebook (NASDAQ: FB) with a price target of $90. Comments follow Q4 results. Analyst Shebly Seyrafi thinks its video opportunity is starting to ramp.

"The company reported yet another strong quarter, with revenue growth of 49% Y/Y and ex-FX advertising revenue growth of 58% Y/Y, both above consensus. Even though investors have been concerned about high expense growth post-WhatsApp, FB actually lowered the high-end of its expense growth guidance for F2015 from 70% to 65% Y/Y," said Seyrafi.

"Looking at the three key vectors of performance – user growth, engagement, and monetization, FB delivered on two (user growth, as MAU growth of 13% Y/Y and DAU growth of 18% Y/Y beat consensus; and monetization as advertising ARPU of $2.61, up 34% Y/Y, beat the $2.54 consensus) while it slipped only slightly on one (engagement, as DAU/MAU declined ever so slightly to 63.9% from 64.0% in FQ3). Video is now growing rapidly for the company. FB had more than 3B video views per day in FQ4, up from 1B video ads per day in FQ3. We think that the Audience Network, which was rolled out globally in October, has the great potential for FB to monetize ads off platform," he added.

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 $76.24 yesterday.

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