Facebook’s already-scuffling stock took another hit Monday with the release of a research report by Sanford C. Bernstein & Co., which assigned the social network a target price of $25 per share and an “underperform” rating.
Facebook shares were trading at around $27.15 per share at the time of this post after hitting a low of $26.79 at 10:14 a.m. ET, according to Bloomberg. The stock made its initial public offering debut May 18 at $38 per share.
Bloomberg quoted Sanford C. Bernstein Analyst Carlos Kirjner from the research report:
It is difficult to argue for owning the stock today. A near-term slowdown in sales growth will fuel investor concerns about full-year-2013 sales. The deceleration may prove to be a temporary setback if, over time, Facebook manages to improve monetization of its inventory, both PC- and mobile-based, and maximize the value of social advertising.
Readers: Do you agree with the assessment by Sanford C. Bernstein, or do you think Facebook’s stock will rebound?
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