Facebook Remains Our Top Pick Following Better Than Expected Quarter Earnings, Says Topeka
In reaction to Facebook (FB) second-quarter earnings release, Topeka analyst Victor Anthony today reiterated a Buy rating and increased his price target to $100 (from $80), which represents a potential upside of 29% from where the stock is currently trading.
“Facebook remains our top pick for the year after delivering a much better than expected quarter, in which revenues, Adj. EBITDA, and Non-GAAP EPS topped our expectations. Management has delivered results above our expectations on all metrics for the past two years. No other company in our coverage universe has this track record. As a result, we believe the shares should trade at a premium multiple to the peer group. With the shares approaching our year-end 2014 price target, we rolled forward our valuation to year-end 2015. The change, in addition to higher estimates, increases our price target to $100, representing an annualized return of roughly 20% based on the after-hours share price. We remain active buyers and see FAN, Instagram, auto-play video ads, and China as incremental opportunities”, Anthony wrote.
According to TipRanks.com, which measures analysts and bloggers success rate based on how their calls perform, analyst Victor Anthony has a 19.5% average return and a 75% success rate. Anthony has an 54.2% average return when recommending FB, and is ranked #56 out of 3213 analysts.