Equities researchers at Citigroup Inc. lifted their target price on shares of Facebook (NASDAQ:FB) from $55.00 to $57.00 in a research report issued on Thursday, AnalystRatings.Net reports. The firm currently has a “buy” rating on the stock. Citigroup Inc.’s price objective suggests a potential upside of 13.53% from the company’s current price.
The analysts wrote, “Cautious investors often cite Facebook’s recent stock run and valuation, or the ad load headwind, but the key question should be: what is FB’s long-term earnings potential and how do you get there? Not unlike how Google was able to grow from a similar revenue level as FB today ($7-8bn) in ’05/06 to >$20bn just two years later (and to >$50bn in CY12), we believe FB has a similar opportunity to leverage its global user scale, identity-based data asset, >1mm advertiser base, and technical/product development capabilities to enhance its existing business and expand into natural adjacencies. But, what are the likely key levers and building blocks? In this report, we detail analysis of five key potential drivers of incremental upside, including 1) increased core eCPMs, 2) Instagram ads, 3) video ads, 4) fillrate, and 5) a third-party ad network. In short, using reasonable assumptions, we believe these drivers in aggregate could add $3bn in incremental revenue and $1.8bn in adj. EBITDA in two years and represent the path to $70/ share.”
Facebook (NASDAQ:FB) traded up 1.84% on Thursday, hitting $51.1285. 37,983,924 shares of the company’s stock traded hands. Facebook has a 1-year low of $17.55 and a 1-year high of $45.62. The stock has a 50-day moving average of $49.27 and a 200-day moving average of $34.8. The company has a market cap of $124.5 billion and a price-to-earnings ratio of 227.17.
Facebook (NASDAQ:FB) last announced its earnings results on Wednesday, October 30th. The company reported $0.25 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.19 by $0.06. The company had revenue of $2.02 billion for the quarter, compared to the consensus estimate of $1.91 billion. During the same quarter in the prior year, the company posted $0.12 earnings per share. The company’s quarterly revenue was up 59.7% on a year-over-year basis. Analysts expect that Facebook will post $0.73 EPS for the current fiscal year.
In other Facebook news, VP Colin Stretch unloaded 2,977 shares of Facebook stock on the open market in a transaction that occurred on Tuesday, October 29th. The shares were sold at an average price of $50.74, for a total value of $151,052.98. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link.
A number of other firms have also recently commented on FB. Analysts at Canaccord Genuity raised their price target on shares of Facebook from $60.00 to $62.00 in a research note to investors on Thursday. They now have a “buy” rating on the stock. Separately, analysts at Oppenheimer raised their price target on shares of Facebook to $60.00 in a research note to investors on Thursday. They now have an “outperform” rating on the stock. Finally, analysts at JPMorgan Chase & Co. raised their price target on shares of Facebook from $53.00 to $62.00 in a research note to investors on Thursday. They now have an “overweight” rating on the stock. Nine equities research analysts have rated the stock with a hold rating and thirty-five have assigned a buy rating to the stock. The stock presently has a consensus rating of “Buy” and an average price target of $55.68.
Facebook, Inc (NASDAQ:FB), is engaged in building products to create utility for users, developers, and advertisers.
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