finance

Jefferies Says Current Revenue Growth Estimates for Facebook Too Conservative




By Dhirendra Tripathi

Investing.com – Facebook (NASDAQ:) shares were flat Thursday but Jefferies (NYSE:) said the current estimated 34% year-on-year revenue growth is too conservative.

Analyst Thill raised his price target to $360 from $350 earlier while retaining buy rating on the stock.

Thill’s target is nearly 20% higher from the stock’s current level of $301. 

The analyst believes the stock holds potential for upside surprises, citing several reasons for his optimism. According to him, advertising spending on social platforms is ahead of original plans while a reviving economy is driving companies to spend more on branding.

Also, Apple’s (NASDAQ:) proposed privacy settings in iOS14, changes that could hurt Facebook, haven’t yet been implemented.

Apple’s planned privacy update will inform users about the apps tracking them and ask them if they approve of it.

Facebook is against the changes. The social media giant wants to continue to show Apple users personalized ads, like it does now with them and Android phone users.

“In addition to a better-than-expected Q1, we also anticipate positive commentary around ecommerce initiatives (for e.g. number of users or businesses using Shops) and a lowering of the FY21 expense guide to support the stock,” Thill wrote.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.  Learn more