Facebook (FB) Bullish Stance Reiterated by SunTrust's Peck Amid Strong Q2
SunTrust Robinson Humphrey analyst Robert Peck reiterated a Buy rating and $125 price target on Facebook (NASDAQ: FB) following strong Q2 results.
The analyst highlighted, "1) ex-FX Ad revenue grew ~55% y/y and 19% q/q while reported Ad revenue grew 15% q/q, inline with our ests. 2) MAUs grew across all geographies and DAU penetration increased slightly to ~65% - time spent per day rose to 46 minutes (ex WhatsApp); 3) Operating margin declined ~500bps YoY to ~55% with costs up 57% - though incremental margins were better in 2Q vs. 1Q; 4) High-end of operating expense guidance growth lowered to 55% from 60%; and 5) investors focused on 2H 2015, as roll-outs of Instagram, video, Buy button, and FAN are accretive"
The firm revised FY2015 and FY2016 revenue/EBITDA/EPS to $4.4B/$2.5B/$0.48, $17.1B/10.4B/$2.00, and $23.7B/$14.6B/$2.76.
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Shares of Facebook closed at $96.99 yesterday.