Stifel analyst John Egbert raised his price target for Facebook (FB) to $250 from $240 and keeps a Buy rating on the shares ahead of the company's Q4 results on January 29.
Despite a shorter-than-usual holiday shopping season, third-party advertising agency checks suggest holiday ad spend remained healthy and Facebook likely saw another quarter of robust advertising growth as retailers adjusted their strategies to cope with the calendar change, Egbert tells investors in a pre-earnings research note.
The analyst expects the company's user growth and engagement to "remain healthy" in Q4 after a surprise rebound in Q3, and he thinks Facebook may report new growth milestones within its family of apps during the next few quarters. Egbert says a more optimistic outlook for revenue growth in fiscal 2020, combined with strong expected audience growth, meaningful operating leverage, and an attractive valuation "by nearly any measure" keeps him bullish on Facebook shares.
Comments
Log in or sign up to join the conversation.