This New Facebook Stock Price Target Foresees a 25% Gain
MKM Partners’ Rob Sanderson today reiterates a ‘Buy’ rating on shares of Facebook, Inc. (FB) while raising his price target to $150 from $135, which represents expected upside of 25% to the stock’s current price of $120. Sanderson argues that while the social media giant is growing at a very fast rate, is still in the early stages of growth. Citing MKM’s research, which shows that the top 15 digital platforms now receive 15% of total U.S. ad dollars, up from 9%-10% six months ago, Anderson also said that Facebook now obtains 10% of the ad revenue obtained by the top 15 digital ad platforms, up from 5% two years ago. Furthermore, the analysts adds that Facebook’s ad revenue is still growing at a 63% clip, and that the name is “a must-own stock for growth managers.”
Facebook stock has lost $0.24 to $120.04 in late morning trading today. Approximately 6 million shares have already changed hands, less than 2 hours into the trading session. FB’s average 3-month daily volume is 29 million shares.
On valuation-measures, shares of Facebook, Inc. have a trailing-12 and forward P/E of 92.84 and 26.31, respectively. P/E to growth ratio is 0.98, while t-12 profit margin is 23.71%. EPS registers at 1.29. The company has a market cap of $343.35B and a median analyst price target of $145.00 with a high target of $170.00.
On trading-measure, FB stock has a beta of 0.79 and a short float of 22.7 million. In the past 52 weeks, shares of Menlo Park, California-based company have traded between a low of $72.00 and a high of $121.08, with its 50-day MA and 200-day MA located at $114.09 and $107.35 levels, respectively.
FB currently prints a one year return of about 53% and a year-to-date return of around 15%.