Stifel analyst John Egbert reiterated a Buy rating and $260.00 price target on Facebook (NASDAQ: FB) ahead of earnings on Wednesday, July 29 after the market close.

Tha analyst stated "We expect another quarter of strong user growth / engagement for Facebook as its services likely saw elevated usage during COVID-19 lockdowns. Recovering demand from advertisers during May and most of June will likely enable Facebook to deliver modest y/y growth in 2Q despite the ad industry declining overall. However, given persistent COVID headwinds and advertisers pausing campaigns in June, ad agency reads are more opaque than usual for 2Q, while July trends are even more difficult to ascertain. However, we believe Facebook is well-positioned to weather the current headwinds, continue taking market share of digital ads, and position itself for even faster growth in FY:21 and beyond".

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Shares of Facebook closed at $232.00 yesterday.