RBC Capital analyst Mark Mahaney was out pounding the table on Facebook Inc (NASDAQ:FB) Monday, reiterating an Outperform rating and price target of $105, which represents a potential upside of 31% from where the stock is currently trading.
Mahaney wrote, “FB is our #2 Top Long Recommendation in the Large Cap Net sector behind AMZN. At a high level, we see something of an inflection point in Internet Advertising in terms of demand for Video & Mobile, and we believe FB may be the biggest beneficiary of this inflection. Further, FB’s fundamentals remain among the strongest in the sector, given our est for 50%+ organic Ad Rev growth in ’15. Also, we believe Street ests have upside revision potential. Finally, we view current valuation as very attractive on a growth-adj basis.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Mark Mahaney has a total average return of 22.6% and a 64.0% success rate. Mahaney has a 48.3% average return when recommending FB, and is ranked #19 out of 3624 analysts.
Out of the 46 analysts polled by TipRanks, 42 rate Facebook stock a Buy, 3 rate the stock a Hold and 1 recommends it a Sell. With a return potential of 6.8%, the stock’s consensus target price stands at $85.69.