Deutsche Bank analyst Lloyd Walmsley raised his Q3 and 2018 estimates for Facebook citing "increasing signs of strength." Conversations in the advertising industry continue to point towards "strong" same-client budget growth in Q3 and a longer term willingness to "lean into" new inventory on Facebook, Walmsley tells investors in a research note.
He increased his ad revenue growth rate excluding currency for Facebook to 42% from 39% in Q3 and to 32% from 30% in 2018. The analyst believes Facebook has the most upside to estimates over the next 6-12 months and is his favorite name among the large cap Internet space. Walmsley upped his price target for the shares to $220 from $215 and keeps a Buy rating on the name. Facebook closed yesterday up $3.47 to $167.68.
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