Shares of Facebook (FB) are up almost 6%, to $62.30 in Tuesday’s premarket trading after Credit Suisse’s Stephen Ju issued a research paper to clients in which he upgraded the social network to ‘Outperform’ from ‘Neutral’ citing the firm’s belief that Street consensus estimates underestimate the long-term potential of FB’s new products.
[via Barron’s Tiernan Ray] “Facebook will be able to drive revenue growth without a material lift in ad loads, 2) Street models are too conservative and underestimate the long-term monetization potential of upcoming new products, 3) optionality and upward bias to estimates do not contemplate contributions from multiple other products (Offers, 3P mobile ad network, etc.)”Credit Suisse, which also thinks Facebook will be able to drive a higher rate of growth in revenue without higher ad loads, raised its price target on the stock to $87 from $65.
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