Cowen increased Price Target for Facebook to $156

Published By: Ken Bock on January 10, 2017 11:02 am EST

Sell side firm Cowen maintained its Outperform rating for stock of Facebook Inc. (NASDAQ:FB) and bumped its Price Target for the stock from $150.00 to $156.00, staying bullish on the company’s 4Q report. Earlier, Axiom securities had also increased its Price Target for the stock from $150.00 to $160.00 and presented a Buy rating for the stock.

The Sell side firm in its research note issued to investors stated several reasons for the reiteration in stock rating and the increase in Price Target. First, the overall strength prevalent in video advertisement market presents an upside to the stock. Second is the social leadership of the core Facebook and Instagram, which amounts to around 45% of the digital advertisement spending allocations.

Also, the strength of Facebook video, coupled with Instagram growth presents meaningful upside to the stock. The stock currently trades at $124.90, while the Consensus Price Target presented by Street analysts is of $154.36 depicting 23.58% upside potential from its current price. The highest and lowest Price Targets for the stock are of $180.00 and $90.00, respectively.

Out of 48 analysts covering the stock at Street, 28 analysts rate the stock as Buy whereas 16 analysts have presented Strong Buy rating to the company. None of the analyst has rated the stock as Sell, depicting the upside potential and optimism showed by analysts in the stock.

Posting Year-to-Date (YTD) return of 9.93% last year, the stock has begun with a positive momentum in 2017, with it yielding a return of 8.48% in Year-to-Date (YTD) trading. This reflects investor’s optimism in the stock, and an expectation of better numbers from the company in its upcoming earnings results.

The company is set to report its earnings results on January 25 this year. The analysts at Street expect earnings of around $1.09 per share, higher by around 84.75% from its Earnings per Share (EPS) of $0.59 in same period last year