SunTrust Robinson Humphrey analyst, Bob Peck, expects Facebook (NASDAQ: FB) to report another strong quarter driven by mobile but he cut the PT to reflect a lower market multiple.

Data from FB's PMDs suggests 4Q q/q Ad Revenue growth could be ~20%, in line with Street estimates. Checks indicate robust click through rates and low CPCs (better engagement), improving mobile pricing, and volumes. Spend on video ads is particularly strong; more so on mobile.

Instagram rollout to FB's 2.5M advertisers could conservatively drive >$2B revenue lift by 2017. As a proxy, they compare their conservative ramp to Facebook’s initial mobile monetization ramp.

Suntrust expects 4Q rev./EPS of $5.4B/$0.70, vs. Street at $5.4B/$0.68. 2016/2017 revenue estimates are $24.3B/$32.5B, modestly above the Street. For 2016, he expects non-GAAP expense growth of 43% (versus Street at ~41%).

Cutting PT to $120 from $125 to reflect re-rated market multiples. The new PT is based on 17x 2017 EBITDA,

Note: Peck's estimates don't include: Oculus Rift, WhatsApp (900+M users), and Messenger (800+M users).

FB is expected to report results on 1/27 after the market close.

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 $97.94 yesterday.