Facebook: Credit Suisse raises target price
(CercleFinance.com) - Credit Suisse has raised its target price for the Facebook stock from 258 dollars to 305 dollars, ahead of the social network company's second-quarter results, which it will report after close on 29 July.
Facebook last reported that it had 140 million business profiles, of which only 8 million are paying advertisers, Credit Suisse said in a research note.
The broker said the current environment suggests that not only should there be a greater number of business profiles, but the conversion from free to paying advertisers (about 6% for Facebook) should also rise.
Credit Suisse hence maintains its "outperform" rating on the stock, citing potential for better-than-expected ad revenue growth on product innovation (Facebook Shops, Search in Marketplaces, etc.).
The broker also said Street models are too conservative and underestimate the long-term monetization potential of other billion-user properties, such as Messenger and WhatsApp.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
Facebook last reported that it had 140 million business profiles, of which only 8 million are paying advertisers, Credit Suisse said in a research note.
The broker said the current environment suggests that not only should there be a greater number of business profiles, but the conversion from free to paying advertisers (about 6% for Facebook) should also rise.
Credit Suisse hence maintains its "outperform" rating on the stock, citing potential for better-than-expected ad revenue growth on product innovation (Facebook Shops, Search in Marketplaces, etc.).
The broker also said Street models are too conservative and underestimate the long-term monetization potential of other billion-user properties, such as Messenger and WhatsApp.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.