Facebook (FB) PT Raised to $360 at Jefferies Into Q1 EPS, Sees Estimates as 'Too Conservative'
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Jefferies analyst Brent Thill raised the price target on Facebook (NASDAQ: FB) to $360.00 (from $350.00) while maintaining a Buy rating into earnings as they see a de-risked set up with potential for upside surprises.
The analyst commented, " We believe street ests of +34% y/y rev growth are too conservative given 1) our checks point toQ1 social ad spend ahead of original plans, 2) the iOS 14 privacy change has not yet been implemented, 3) DR ad spend has remained robust, and 4) stimulus checks andCOVID-19 optimism have driven a resurgence in brand spend. We also note that the street's Q1 rev est unjustifiably represents the largest QoQ decline in FB's ad rev in public co history (excl. Q1'20 COVID slowdown). In addition to a better-than-expectedQ1, we also anticipate positive commentary around eComm initiatives (e.g. # of users or businesses using Shops) and a lowering of the FY21 expense guide to support the stock.Our $360 PT implies just 26x our raised FY22 EPS est."
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change, Hot Comments
Related EntitiesJefferies & Co, Earnings
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