Oppenheimer analyst Jason Helfstein weighed in today with his prediction on Facebook Inc (NASDAQ:FB), as the company will report second-quarter results after the market close on Monday, July 29. Helfstein expects strong 2Q results, driven by higher mobile engagement, strong monetization and the continued rollout of video ads.
“Checks suggest better 2Q sequential trends in social spend vs. last year, driven by improved targeting, native content and multiple ad formats. 2Q US minutes +26% y/y, vs. +30% in 1Q, modestly below our 28% estimate. 2Q exchange rates suggest a 9% negative impact to revenue, consistent with our prior model. Deeper ad-tech stack, Facebook Audience Network (FAN) and video could provide upside to estimates. Meanwhile, new click definition for CPC’s, video ads priced after 10 seconds, and rollout of Instagram platform to all advertisers could be meaningful drivers for 2H:15.”, the analyst noted.
The analyst maintained an Outperform rating on Facebook Inc. with a price target of $100.00, which represents a slight upside potential from current levels.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason Helfstein has a total average return of 11.3% and a 53.2% success rate. Helfstein has a 45.8% average return when recommending FB, and is ranked #293 out of 3711 analysts.
Out of the 46 analysts polled by TipRanks, 42 rate Facebook Inc. stock a Buy, 3 rate the stock a Hold and 1 recommends Sell. With a downside potential of 3.3%, the stock’s consensus target price stands at $94.71.