UPDATE: Wedbush Assumes Facebook (FB) at Neutral
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Wedbush analyst Ygal Arounian assumes coverage on Facebook (NASDAQ: FB) with a Neutral rating and a price target of $340.00.
The analyst commented, "We assume shares of FB with a Neutral rating and a $340 price target as we’re balanced by Facebook’s commerce initiatives and the headwinds from stronger privacy standards. We’re bullish on the commerce initiatives Facebook is building into its platform. While we do expect continued strength in those areas, a rebound in the overall ad market, and a continued shift towards integrating commerce into the platform, but are also balanced by our view that Facebook is the most exposed to privacy risks, particularly around Apple’s App Tracking Transparency (ATT) efforts that will limit the Identifier for Advertisers, or IDFA. In our view, Facebook has been the strongest digital ad platform at effectively tracking and targeting users across the web and has the most to lose from losing signal with more limited tracking capability. Facebook has been at the forefront of dropping its pixel across sites, adding the social feed (likes and logins) on third-party sites, and tracking users on its sites across the web, then effectively targeting them on its platform. Its shift towards commerce initiatives to “close to loop,” and drive the funnel full on the platform can certainly help support some of those shifts, but in the near term, we think Facebook could lose some of its relatively stronger ROAS edge for advertisers and remain more balanced by the opportunities and challenges."
Shares of Facebook closed at $311.54 yesterday.
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