JPMorgan Cuts Facebook (FB) EPS For FY19 & '20

JPMorgan analyst, Doug Anmurth, reiterated his Overweight rating on shares of Facebook (NASDAQ: FB) but cut EPS estimates for 2019-2020 by 5-6% on bigger investment increases over the coming years. The firm also cut its price target from $205 to $195.

The analyst stated, "While numbers did reset coming out of 2Q earnings, they were likely adjusted more around revenue than spending, and even with FB suggesting it could reach mid-30%’s operating margins in a few or several years, investments in 2019 could be larger than anticipated in consensus estimates".

They are raising 2019 opex growth from 33% to 40% and 2020 from 24% to 25%, thereby lowering 2019 GAAP EPS by 6% to $7.40 and 2020 by 5% to $8.43.

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 $160.85 yesterday.

You May Also Be Interested In

• Baidu (BIDU) PT Lowered to $150 at Benchmark on Near-Term Margin Concerns
• Centrus Energy Corp. (LEU) PT Raised to $185 at UBS
• Amer Sports Inc. (AS) PT Lowered to $42 at Truist, but 'Momentum continues to surge in a tough macro'