Needham and Company on Valuing Facebook (FB) Stock
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Price: $45.08 -0.07%
Rating Summary:
46 Buy, 17 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
46 Buy, 17 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Analysts at Needham and Company think the best way to value Facebook (Nasdaq: FB) is to look at visible revenue as well as “optionality upside”.
"In our view, FB should, over time, garner the same share of global internet ad revenue as it commands of total consumer time spent globally. This would suggest that the advertising revenue portion of FB's valuation is worth approximately $20/share,” said analyst Laura Martin.
In addition, Martin thinks the stock deserves a premium considering its unique position and the prospects it has in several areas.
"A Black-Scholes call option calculation concludes that if FB is successful in any of global ecommerce, mobile-payments, video, or innovative social-graph services, EACH of these opportunities could justify paying up to $10/share for an option-type call price today for FB," said Martin.
Needham and Company has a Buy rating on Facebook with a price target of $25.
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 $19.52 yesterday.
"In our view, FB should, over time, garner the same share of global internet ad revenue as it commands of total consumer time spent globally. This would suggest that the advertising revenue portion of FB's valuation is worth approximately $20/share,” said analyst Laura Martin.
In addition, Martin thinks the stock deserves a premium considering its unique position and the prospects it has in several areas.
"A Black-Scholes call option calculation concludes that if FB is successful in any of global ecommerce, mobile-payments, video, or innovative social-graph services, EACH of these opportunities could justify paying up to $10/share for an option-type call price today for FB," said Martin.
Needham and Company has a Buy rating on Facebook with a price target of $25.
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 $19.52 yesterday.
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