Needham & Company Raises Est., PT on Facebook (FB)

Needham & Company analyst Laura Martin reiterated a Buy rating and boosted estimates and her price target on Facebook (NASDAQ: FB) to $130.00 (from $115.00) ahead of Q1 results on 04/27.

Martin commented, "We raise our revenue and profitability estimates for FB for 1Q16 and FY16, based on FB’s F8 comments. We are optimistic about FB’s new monetization efforts for FB Messenger, as well as several new revenue streams targeting TV ads, payments, and eCommerce. We believe that the bulk of online ad growth will be in mobile and FB garners 75% of mobile advertising dollars. For 1Q16, we now expect revenue of $5.25B (up 48% y/y and 5% above previous estimates), and Non-GAAP EPS of $0.62 (up 48% y/y and 4% above previous estimates). We also raise our estimates for FY16 to revenue of $25.63B (up 43% y/y and 5% above previous estimates), and Non-GAAP EPS of $3.12 (up 37% y/y and 8% above previous estimates). Owing to higher estimates, we raise our Target Price to $130 (from $115). We maintain our Buy rating."

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 $110.45 yesterday.

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