Nomura Hikes Facebook (FB) Target

In a note published to clients Friday, analysts at Nomura reiterated a ‘Buy’ rating on Facebook (FB), and raised the price target from $78.00 to $84.00.

In the report, Nomura noted, [via the economic daily] “Investors have asked if forward price increases at FB will be driven more by mix shift or by price per core ad growth; we believe the answer is both. Further runway exists for mix shift to mobile in terms of both revenue and ad impressions. We separately believe there is pricing power inherent to News Feed ads, driven by characteristics unique to them: reach, targetability, standardization, and as of yesterday, video”.

Nomura also said that “We are raising our estimates for blended pricing upside, raising ad estimates, and increasing our target price to $84 from $78, keeping our target 22x 2015E EV/EBITDA multiple constant”.

Facebook shares, trading at 111X t12-month earnings, closed at $68.83 on Thursday and are currently down 1.50 percent.

Be the first to comment

Leave a Reply

Your email address will not be published.