Oppenheimer Reiterates Outperform On Facebook Ahead Of Earnings

In a research report published Wednesday, Oppenheimer analyst Jason Helfstein reiterated an Outperform rating on Facebook Inc. (NASDAQ:FB) with a $90 price target, into the company’s upcoming third-quarter results. Helfstein’s price target implies near 24% upside to the current price. 

Helfstein noted, “We believe there is upside to 3Q Street estimates based on strong monetization trends, despite US user engagement trending slightly below our estimates. Social agencies suggest same-client CPC growth of 20%-30% q/q and +110% y/y, with 80% y/y growth in total spending or +13% q/q. Large performance advertisers are continuing to adopt custom audiences, and brand advertisers are increasing spend. Organic reach is becoming more difficult, due to competition for newsfeed impressions. Right-rail ads now just two slots per page. Total 3Q US minutes increased 35% y/y, compared to +42% in 2Q and below our +39% estimate. We also see upside from increased video adoption. 3Q revenue/EBITDA 4%/6% above the Street.”

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 18.1% and a 59.1% success rate. Helfstein has a 51.7% average return when recommending FB, and is ranked #93 out of 3332 analysts.

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