2013-05-01 23:03:10 - Laureate BVI issues aggressive Buy Recommendation for Facebook stock.
Laureate BVI has issued an aggressive 12-month stock price target of $40 for Facebook. Facebook (FB) is expected to report a profit of 12 cents a share, on revenue of $1.44 billion. CEO Peter Tasca says, “Our estimate is based on the assumption of an average run rate of $4 million a day in mobile advertising.”
Facebook (FB) shares are still down from its May 2012 IPO price of $38 a share, but the company has stabilized because of its huge base of more than a billon users. The company has also shown some positive signs in building its mobile business in the US and Internationally. According to Tasca, “ Mobile advertising revenue is now showing significant growth”. Facebook has
been showing that its members are migrating away from the desktop, where Facebook generates most its revenue and moving towards mobile apps.
Wall Street projections for desktop revenue is expected to come in at 864 million, which is down about 16% from the previous quarter. Meanwhile mobile advertising is expected to come in at $382 million, up 25 percent from the previous quarter.
Facebook’s strongest tool is the new AD formats. The tool has combined “likes” with third-party data marketers such as Datalogix, Acxiom and Alliance Data Systems. This is data from Web pages that consumer’s visit, the email sign-up lists and patterns in online spending.
According to Tasca, “This Facebook is a very powerful tool for advertisers. Hyundai Motors ran a campaign that helped result in a 28% increase in sales.”
Facebook is still seen as a strong and promising long-term bet with Wall Street.