Facebook (FB) PT Raised to $140 at Evercore ISI Amid 'Blowout' Qtr
Evercore ISI analyst Ken Sena reiterated a Buy rating and boosted his price target on Facebook (NASDAQ: FB) to $140.00 (from $130.00) following "blowout" results after the close.
Sena commented, "Facebookâs quarter was a blowout with revenues increasing 60% x-FX vs. our / Street 48%. The advertiser is no longer asking if they should do mobile, they are asking how. And Facebook with its core product, next generation platforms (e.g., Instagram, Messenger and WhatsApp), and connectivity investments (e.g., VR / Oculus, AI, and data transport) is clearly proving itself the place to go to buy mobile. This is happening because of the reach and frequency they can provide but also because FB is making performance investments in measurement, targeting, and creative ad formats, and the results certainly suggest it is working. On higher estimates, our target increases to $140 from $130."
For 1Q16, revenue comes up 7% to $5.24bn (48% y/y, 53% x-FX). Meanwhile, adj. EBIT increases 7% as well to $2.67bn on margins of 51%. FY16 revenue increases 5% to $25.0bn (39% y/y, 42% x-FX). While non-GAAP opex growth for the year increases to 46% from 40%, consistent with the low end of guidance, adj. EBIT still comes up 5% to $13.5bn, implying margins of 54%.
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Shares of Facebook closed at $94.45 yesterday.