Facebook Inc (FB) Jumps On Price Target Hike


Facebook Inc (NASDAQ:FB) shares rose by more than 2% in trading so far today after two analyst reports increased their price targets on the social networking company. Evercore analyst Ken Sena authored a report, released earlier today, that increased the price target on the company to $45.

Facebook Inc (FB) Jumps On Price Target Hike

The report highlighted the firm’s increased ad targeting ability as well as its new format as positive catalysts for earnings growth in the coming quarter and beyond. At the time of writing shares in Facebook Inc (NASDAQ:FB) were trading at $38.06, up 2.64% for the day’s trading.

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Mobile underestimated

Sena believes that increased mobile usage and monetization is one of the most important trends for Facebook. His revenue and earnings estimates, which come in significantly above consensus, are partly based on a belief that the Street is underestimating the power that mobile will have on the company’s future.

The reason for the underestimation, according to the report, is that many of the changes to the Facebook Inc (NASDAQ:FB) mobile platform were made in the middle of the last quarter. That, according to Sena, means they have yet to have a full quarter’s impact. The third quarter of the new year will be a real testament to the company’s advances, and Sena expects that quarter to come in strong.

Facebook price targets up all over

Earlier today Topeka Research increased their price target on Facebook Inc (NASDAQ:FB) to $47. The increase is one among many in recent weeks as analysts become increasingly optimistic about the firm’s future in the wake of its most recent earnings report. Many trends in the company’s business, and its continued improvement of the Facebook platform for both advertisers and users, are seen as the most important factors in increasing revenue, and earnings.

Since the start of 2013 shares in the social networking company have risen by more than 40%, with pretty much all of that rise coming after the release of the company’s earnings report in late July. Investors are getting optimistic about Facebook Inc (NASDAQ:FB) for the first time since the company went public in May 2012. If the projections offered by Evercore are right, the company has quite a year ahead.

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