Analysts Split On Facebook Outlook.
On the same day one analyst downgraded Facebook share, another one raised his price target on the social networking giant. Earlier today,
Pivotal Research Group’s Brian Wieser downgraded Facebook from a “buy” to “hold,” suggesting the market lately has
gotten too giddy about stock after being bearish for so long. In particular, he suggests investors are overly optimistic about the potential for video
advertising on the site.
Wieser maintains a $48 price target on Facebook.
Ben Schachter of Macquarie Securities subsequently issued his own research note, raising his 12-month price target on Facebook from $49 to $62 on the growth of its mobile ad business. Schachter estimates Facebook’s mobile app ads alone will generate $185 million in revenue of about $185 million in Q3, up from $65 million in Q1.
Facebook earlier this week added new calls-to-action to the app ad unit including terms like Open Link, Shop Now, and Play Game that could further expand the market for the ads. Besides the mobile upside, Schachter, who has an “outperform” rating on Facebook, is also more bullish than Wieser on the expected rollout of video ads in the news feed.