Facebook Inc (NASDAQ:FB) launched its new Marketplace feature app that will enable the social media giant’s users to buy and sell items within the mobile app. However, on back of the launch, there are users who broke FB’s prohibition list and attempted to sell items like guns and drugs.
Piper Jaffray top analyst Gene Munster considers this a “non-event” and therefore reiterates an Overweight rating on FB with a price target of $185, which represents a 44% increase from where the shares last closed.
Munster believes, “Some investors have wondered if this misstep is a sign that processes at Facebook are deteriorating. Launching new products, particularly social products and marketplaces where the content is up to users, always has the potential to yield unintended consequences. We believe nothing has changed in Facebook’s ability to go after new markets and build world-class products and thus view the noise around Marketplace as a non-event.”
As usual, we like to include the analyst’s track record when reporting on new analyst notes to give a perspective on the effect it has on stock performance. According to TipRanks, top five-star analyst Gene Munster has achieved a high ranking of #6 out of 4,193 analysts. Munster upholds a 67% success rate and realizes 19.1% in his yearly returns. When recommending FB, Munster garners 39.0% in average profits on the stock.
TipRanks analytics demonstrate FB as a Strong Buy. Based on 38 analysts polled in the last 3 months, 33 rate a Buy on FB, while 5 maintain a Hold. The consensus price target stands at $156.91, marking a 22% upside from where the stock is currently trading.