Raymond James Ups Rating On Facebook Stock

Facebook got some more good news on Wall Street ahead of its fourth-quarter earnings call Wednesday), as Raymond James & Associates Analyst Aaron Kessler raised his rating on the social network’s stock to “outperform” from “market perform” and set a target price of $38 per share, matching the stock’s debut price.

According to Forbes, Kessler also:

  • Increased his fourth-quarter revenue forecast for Facebook to $1.57 billion, slightly above the consensus figure of $1.5 billion.
  • Pegged non-GAAP (generally accepted accounting principles) profit at 18 cents per share, above Wall Street’s estimate of 16 cents.
  • Projected fourth-quarter ad revenue at $1.35 billion, compared with the consensus of $1.28 billion.

Forbes reported that Kessler based his optimism about the social network on three factors:

  • Expectation for increased monetization, driven by mobile, new ad formats, and international.
  • Signs of improving usage trends, driven by mobile.
  • Expectations for upside to consensus estimates.

Readers: Do you think there will be any surprises in Wednesday’s earnings call?

Related Stories
Mediabistro Course

Web Analytics

Web AnalyticsStarting July 30, master Google Analytics to build traffic and increase sales for your brand! In this course, you'll learn how to use metrics to develop a digital strategy for your business, determine what to look for in analytics reports, use your findings to improve your online initiatives and more. Register now!