Facebook Given Average Rating at S&P Equity Research (FB)
Facebook (NASDAQ:FB)‘s stock had its “average” rating restated by equities researchers at S&P Equity Research in a research report issued on Friday. They currently have a $3.00 price target on the stock. S&P Equity Research’s target price would indicate a potential downside of 96.01% from the stock’s previous close.
The analysts wrote, “Don’t let the critics dissuade you, Facebook (FB) is a must-own stock, Jim Cramer told his Mad Money TV show viewers Thursday. Cramer said this stock, which he owns for his charitable trust, Action Alerts PLUS, still has a lot of room to run.
It’s inevitable that when a stock sees the kind of growth that Facebook has, the critics will be out in force, comparing the company’s market cap to that of high-profile names in the Dow Jones Industrial Average or the S&P 500. But these comparisons don’t mean a thing, Cramer continued. The only thing that matters is earnings.
Facebook is expected to earn $3 a share in earnings and is currently growing at 60% a year. Cramer said money managers are willing to pay twice a company’s growth rate, but in this case he used just half its growth rate for his calculations. That means Facebook is worth 30 times $3, or $90 a share.”
Shares of Facebook (NASDAQ:FB) traded up 0.28% during mid-day trading on Friday, hitting $75.19. The stock had a trading volume of 45,917,436 shares. Facebook has a 1-year low of $34.01 and a 1-year high of $76.74. The stock has a 50-day moving average of $66.62 and a 200-day moving average of $63.28. The company has a market cap of $192.5 billion and a P/E ratio of 79.51.
Facebook (NASDAQ:FB) last issued its quarterly earnings data on Wednesday, July 23rd. The company reported $0.42 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.32 by $0.10. The company had revenue of $2.90 billion for the quarter, compared to the consensus estimate of $2.80 billion. During the same quarter in the prior year, the company posted $0.19 earnings per share. The company’s quarterly revenue was up 60.5% on a year-over-year basis. On average, analysts predict that Facebook will post $1.60 earnings per share for the current fiscal year.
Several other analysts have also recently commented on the stock. Analysts at Nomura reiterated a “buy” rating on shares of Facebook in a research note on Thursday. They now have a $82.00 price target on the stock, up previously from $78.00. Separately, analysts at Raymond James reiterated an “outperform” rating on shares of Facebook in a research note on Thursday. They now have a $80.00 price target on the stock, up previously from $77.00. Finally, analysts at Deutsche Bank reiterated a “buy” rating on shares of Facebook in a research note on Thursday. They now have a $90.00 price target on the stock, up previously from $85.00. Eight investment analysts have rated the stock with a hold rating and thirty-four have assigned a buy rating to the company’s stock. Facebook has an average rating of “Buy” and a consensus price target of $79.11.
In other Facebook news, VP David B. Fischer sold 36,000 shares of Facebook stock in a transaction that occurred on Thursday, July 24th. The stock was sold at an average price of $72.85, for a total value of $2,622,600.00. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link.
Facebook, Inc (NASDAQ:FB) is engaged in building products to create utility for users, developers, and advertisers.
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