Facebook (FB) PT Raised to $118 at JPMorgan
JPMorgan analyst Doug Anmuth reiterated an Overweight rating and boosted his price target on Facebook (NASDAQ: FB) to $118.00 (from $100.00) amid continued strong execution.
commented, "FB delivered another strong qtr w/55% FXN ad revs growth & non-GAAP op margins 200-300 bps ahead of us & the Street. FB also again shaved the high end of its ’15 non-GAAP opex growth by 500bps, moving to +50-55%. Overall, the qtr was clean & fairly straight forward, though w/o big upside. FB expects reported ad rev growth to decelerate modestly in 3Q & 4Q, & expects Payments & Other to decline more—neither of these should be a surprise. Street numbers may not change much & some of the focus will shift to FB's '16 expense outlook, which mgmt could provide at 3Q earnings. We currently project 37% Y/Y non-GAAP opex growth in ’16, though we’ve also lowered our 2H15 projected spending as FB is lapping heavier spend from 2H14 & 2Q15 discipline was better than expected. In the N-T, FB shares could digest the past month’s healthy appreciation, but we believe FB continues to execute well, remains appropriately focused on balancing growth & investments, & should benefit more from new drivers like video & Instagram in coming qtrs, along w/ continued overall mobile news feed growth. We reiterate our OW & establish a Dec '16 PT of $118."
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Shares of Facebook closed at $96.99 yesterday.