Facebook (FB) Q2 Strong Despite FX, Goldman Sachs Notes; PT Lifted to $110
Goldman Sachs analyst Heather Bellini reiterated a Buy rating and boosted her price target on Facebook (NASDAQ: FB) to $110.00 (from $102.00) following strong Q2 results, with mobile ads leading the way with 74% revenue growth.
Bellini said on a constant currency basis, ad revenue growth of 55% yoy did not decelerate from last quarter. Further, currency was a $50mn greater headwind on total ad revenue than they were forecasting, suggesting constant currency upside of $95mn versus the beat of $25mn last quarter.
"We see Facebookâs mobile ad story to continue to be on a strong trajectory with potential upside drivers in 2H15 including Instagram, video, and dynamic product ads," the analyst said. Further, our field checks suggest a growing base of brand advertisers competing in auctions with traditional direct response marketers, which we see an incremental driver of pricing growth."
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Shares of Facebook closed at $96.99 yesterday.