Citi analyst Mark May raised his price target for Facebook (FB) shares to $158 from $148 saying it "feels like it is still early days for the company." The social networking giant closed Friday up 72c to $129.07.
Facebook's valuation multiple can expand as investors become less concerned about a possible slowdown in ad load growth and the potential competitive threat posed by Snapchat, May tells investors in a research note. After stress testing his model for these concerns, May concluded that consensus expectations "not only appear reasonable but also potentially conservative." He keeps a Buy rating on Facebook.
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