Facebook (FB) PT Raised to $500 at Credit Suisse Despite Ad Growth Slowing

July 29, 2021 6:00 AM EDT
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Price: $341.15 -3.52%

Rating Summary:
    51 Buy, 12 Hold, 2 Sell

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    Up: 10 | Down: 12 | New: 30
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Credit Suisse analyst Stephen Ju raised the price target on Facebook (NASDAQ: FB) to $500.00 (from $480.00) after the company reported rev/Adj. EPS of $29.1b/$4.51 vs. consensus $27.8b/$3.29. The analyst's FY21 estimates for revenue/Adj. EBITDA/Adj. EPS increase to $122.2b/$66.1b/$17.43 vs. prior $114.4b/$59.7b/$15.46.

The analyst reiterated an Outperform rating, stating "ad revenue growth of +54% was propelled by ongoing ad pricing recovery, which accelerated from the prior quarters to +47% YOY (vs 1Q21 +30%, 4Q20 +5%). And as video content now comprises half of the time spent, Facebook is in a position to see ongoing benefits to ad pricing. Ad impression growth did slow to +6% (vs 1Q21 +12%, 4Q20 +25%) on the more difficult comparisons from last year’s lockdown driven engagement bump. Reels should become a more meaningful component of top line growth over the next several quarters as advertising has rolled out to 80 markets."


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