Facebook Rallies on Analyst Comments Ahead of Earnings Report
By Sam Mattera | January 29, 2013 3:03 AM EST
But shares have been rallying in recent months after hitting a low near $17. Facebook continued to climb on Monday, moving above $32 per share, after several analysts stressed their bullish outlooks.
Raymond James upgraded Facebook to Outperform from Market Perform with a $38 price target.
Bank of America maintained its Buy rating and $35 price target.
JPMorgan reiterated its Overweight rating and $35 price target.
Sterne Agee reiterated its Buy rating and $37 price target.
Facebook is set to report earnings on Wednesday after the closing bell. The analyst community sees upside heading into earnings.
Bank of America believes that increasingly high expectations for Facebook are “achievable” and expects that mobile traction as well as new advertising optimism will be catalysts for the year.
Sterne thinks Facebook is well positioned to benefit from two trends it observes in advertising: The shift to online advertising and the increasing importance of social advertising.
JPMorgan cites Facebook Exchange as a driver for yield in the desktop realm, particularly over the next several quarters. However, JPMorgan also cites video ads in the News Feed, Graph Search and Instagram as future earnings catalysts.
Raymond James was perhaps the most bullish, going so far as to upgrade the stock.
Raymond James states that their checks with advertising partners reveal strong demand for Mobile, News Feed and Facebook Exchange. The firm also sees strong demand from Facebook users, who revealed in a survey that they largely expect to increase their use of Facebook, particularly on mobile devices.
Tom Forte, an analyst at Telsey Advisory Group, told Benzinga mobile will key going forward. Internet usage is increasingly moving from the desktop to the mobile world, and Facebook's advertising revenue (as a percentage) from mobile will continue to increase. Forte has a $38 price target on Facebook.
Shares of Facebook traded near $32.17 on Monday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Most Popular Slideshows
- George Clooney And Amal Alamuddin's Wedding In Venice: Photos Of Groom And His Family, Friends [Slideshow]
- NFL Recap - Week 4: Green Bay Packers 38, Chicago Bears 17 [PHOTOS]
- Walking Is Superfood For Fitness; Celebrities Who Walk For Health
- Derek Jeter With The New York Yankees Through The Years [IN PICTURES]
Join the Conversation
- New Zealand Economy Benefits From Australia's Big Investments; Kiwi Down After RNBZ Comments
- ETF Outlook for Thursday, January 2 (FEZ, FXI, SPY, XHB)
- January Second Trading: Always Interesting
- 13 Things Investors Learned In 2013 - Part II
- Are Diversity and Quality the Way to Profit from the Rebound in Gold and Coal?
- 3 Reasons to Get the Samsung Galaxy Note 4 Instead of the iPhone 6
- iPhone 6 vs Moto G 2014: Motorola’s Budget Smartphone Takes On Apple’s Premium Smartphone
- Google HTC Nexus 9 Tablet October 24 Launch Date Benefits Many
- Galaxy Note 4 vs Nexus 6: Which Smartphone Dominates
- MH 370 Search In Ocean To Intensify With Hi Tech Ships Joining The Plane Hunt From October
- Nexus 7 Tips and Tricks
- Obama’s Bid To Blame Intelligence Chief For Inaction On ISIS Backfires: McCain Asks Obama To Admit Own Mistakes