Facebook: A Little Ice Bucket Dumped On The Bull-Case, But We’re Still Warm, Says Deutsche Bank
In a research report released Wednesday, Deutsche Bank analyst Ross Sandler reiterated a Buy rating on Facebook Inc. (NASDAQ:FB) with a $90 price target, following the company’s third-quarter results.
Sandler commented: “Facebook reported strong 3Q revenue and EBITDA, which were 4% and 3% above consensus. The company’s guidance, which given the history we view as base case (not bull), captures similar 2-year growth in ad revenue (ex-fx) at the high end. The down 10% aftermarket reaction seems appropriate given the earnings reactions across all of high multiple internet companies in 3Q, and the upcoming ~180m shares from WhatsApp that could hit the tape shortly. We would add on weakness over the coming several sessions, as we continue to view FB as one of the best names in the space, straddling both high growth and a reasonable multiple.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ross Sandler has a total average return of 10.5% and a 57.8% success rate. Sandler has a 51.1% average return when recommending FB, and is ranked #272 out of 3350 analysts.