Facebook (FB): Messenger Monetization Begins - BMO

BMO Capital analyst, Daniel Salmon, reiterated his Market Perform rating on shares of Facebook (NASDAQ: FB) and raised his price target to $170 after the company reported better than expected results and Messenger monetization slowly begins. The company is moving away from its core News Feed model, and learning about users' interaction with ads.

The analyst, stated "While we believe it will take time to find the right formats and appropriate experiences for ads, the familiarity of FB's ad platform to its 5mm advertisers will be vital. But we expect the near-term driver to remain the shift to video and thus the expected launch of exclusive premium content later this year (and users' engagement with it) remains our near-term focus".

The new PT of $170 is up from $150.

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 $165.61 yesterday.

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