Facebook shares are getting a boost Wednesday morning from J.P. Morgan analyst Doug Anmuth, who writes in a research note that he “incrementally positive” on the social network’s shares heading into 2013. In particular, Anmiuth notes that it is “very early in the trajectory of Facebook’s mobile advertising,” and that “marketer feedback on mobile and news feeds ads has been positive.”
Anmuth adds that he is “encouraged” that Facebook’s ability to leverage third-party data can drive improvements in desktop ad performance.
Asserting that ad revenues will accelerate at least through Q1, he is raising his 2013 and 2014 ad revenue estimates for Facebook by 6%-7%. He sees ad revenue growth ticking up to 52% in the first quarter, from 49% in the fourth quarter.
Anmuth maintains his Overweight rating on the shares, while lifting his price target to $35, from $29. His Q4 EPS forecast jumps to 19 cents a share, from 15 cents, which boosts his 2012 outlook to 56 cents, from 52 cents. For 2013, he now sees 69 cents, up from 59 cents. For 2014, his forecast goes to 86 cents, from 73 cents.
Read also:
Facebook Stock Is On A Profound Tear As Wall Street Analysts Praise Its … (Business Insider)
New Year, Same Rating: J.P. Morgan Still Bullish on Facebook (All Things Digital)
Facebook Inc (FB) Shares Expected To Accelerate On Mobile Usage (ValueWalk)
Explore: 14 additional articles.
From Our Sponsor
