Facebook: opportunity arises, Credit Suisse says
(CercleFinance.com) - Credit Suisse still recommends that investors buy Facebook shares, with a target price of 240 dollars, even after user data was harvested by Cambridge Analytica through the use of an app in an attempt to influence the 2016 US elections.
In a report sent to clients, the broker acknowledges that the affair will have a negative impact on user growth/engagement, and also anticipates that the stock will be subject to further headline risk in the coming weeks as senior management are summoned to Washington DC for hearings.
However, Credit Suisse remains a buyer of the stock, as it believes that its current P/E multiple "already reflects risks."
The valuation is also in line with the lower end of its recent trading range - when shares struggled with greater questions around revenue growth, the broker points out.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
In a report sent to clients, the broker acknowledges that the affair will have a negative impact on user growth/engagement, and also anticipates that the stock will be subject to further headline risk in the coming weeks as senior management are summoned to Washington DC for hearings.
However, Credit Suisse remains a buyer of the stock, as it believes that its current P/E multiple "already reflects risks."
The valuation is also in line with the lower end of its recent trading range - when shares struggled with greater questions around revenue growth, the broker points out.
Copyright (c) 2018 CercleFinance.com. All rights reserved.