RBC Capital Maintains Outperform On Facebook Following Better Than Expected Q4 Results

RBC Captial analyst Mark Mahaney maintained an Outperform rating on Facebook Inc. (NASDAQ:FB) and slightly reduced the price target to $90 (from $92 – due to FX), following the company’s fourth-quarter results, posting revenue of $3.85B (+53% Y/Y ex-FX), beating RBC/Street estimates of $3.72B/$3.78B.

Mahaney observed, “FB remains one of our Top Long Recommendations in the Large Cap Net sector. FB’s Q4 P&L & Metrics results were intrinsically very strong. We see the company correctly ramping up investments – from a position of strength – in many promising, high-growth areas (e.g. video – now at 3B daily video views vs. 1B in Q3). And those high growth areas represent Four Greenfield revenue opportunities (Instagram Monetization, Auto-Play Video Ads, FAN & WhatsApp) that can contribute well over $2B in incremental Rev in ‘15 (per our 8/29 ULT report). And per our valuation work, FB remains one of the more attractive Large Cap Nets on a growth-adjusted basis.”

Facebook, Inc., is a social networking Website company enabling customers to stay connected with their friends and family.

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