Facebook (NASDAQ: FB) had a pretty exciting 2014 with shares surging about 43% due to the company’s acquisitions and user growth. The company currently has 1.3 billion global users with 63% visiting the website on a daily basis. Now that the New Year is here, analysts are starting to weigh in on what the social media giant has in store for 2015.
Piper Jaffray analyst Gene Munster maintained an Overweight rating on Facebook with an $82 price target on January 5th, highlighting consumers’ eagerness to purchase Oculus Rift. Oculus Rift is a virtual reality product created by Oculus VR, the virtual reality company Facebook acquired in March 2014 for $2.3 billion.
Munster believes consumers “are impressed with the current developers version of Oculus Rift, and are willing to pay for it.” In addition, the analyst suggested “that virtual and augmented reality will become a greater focus for Facebook investors over the next 5 years, and impact Facebook’s business model in 5 to 10 years.”
Munster has rated Facebook 14 other times since June 2012, earning an 85% success rate recommending the stock and an impressive 61.4% average return per recommendation.
Gene Munster has successfully made 159 ratings out of 239 total over the past year, earning a 67% success rate recommending stocks and a +26.6% average return per recommendation.
Bank of America/Merrill Lynch analyst Justin Post also rated Facebook on January 5th, reiterating a Buy on the stock.
Post highlighted “Facebook’s (FB +0.2%) strong engagement (64% of users access daily), usage share gains, multi-app mobile position and monetization opportunity.” All in all, the analyst sees “several levers to help drive incremental revenue growth [for Facebook] in 2015-2016.”
Post has rated Facebook 10 other times since June 2012, earning an 88% success rate recommending the stock and a +48.8% average return per recommendation.
In the past year, Justin Post has successfully made 50 ratings out of 84 total over the past year, earning a 6% success rate recommending stocks and a +19.1% average return per recommendation.
On average, the top analyst consensus for Facebook is Strong Buy.