Facebook (FB) Gets Upgrade, $38 PT from Raymond James

Facebook Inc. (NASDAQ:FB) is perhaps one of the more anticipated earnings reports this week, as the social-network firm is due to release its fourth-quarter earnings after the bell Wednesday. But to get a sneak peek at what might be coming in the report, one can look to what some analysts put out in their weekly research notes – and the first clue may be coming from Raymond James, which has put forth a bullish expectation for the stock.

Raymond James’ Aaron Kessler upgraded Facebook Inc. (NASDAQ:FB) from Market Perform to Outperform and set a price target at $38 per share – which is where the stock started at its IPO last May. Kessler predicted quarterly revenue at $1.57 billion and profits at 18 centers per share, which are above consensus estimates of $1.50 billion of revenue and 16 cents EPS. Kessler added that he expects advertising revenue for the quarter to be $1.35 billion, which is up from the $1.28 billion consensus.

Facebook Inc (NASDAQ:FB)Why such optimism for Facebook Inc. (NASDAQ:FB)? Kessler writes of three key reasons – better monetization thanks to increased mobile usage, better ad formatting and international market share growth; positive usage trends, again driven by mobile; and overall expectation of bettering consensus estimates. Kessler also noted continued enthusiasm among Facebook’s ad partner, as he wrote that there was “strong advertiser demand for Mobile, News Feed and FBX (Facebook Ad Exchange).”

Overall, Facebook Inc. (NASDAQ:FB) has performed 35 percent better than the S&P 500 over the last three months, and the stock has a 12-month consensus price target of $33.50, which is a 6-percent premium on Friday’s close of $31.54. After the first half-hour of trading Monday, Facebook stock was up more than 2 percent from the open to about $32.20 per share.

What do you think? Is Facebook Inc. (NASDAQ:FB) truly on its way back? Is this rally from $18 per share legitimate? What do you expect from Wednesday’s earnings report, and what numbers are most important to you? We’d love your feedback in the comments section below.

DISCLOSURE: I own no positions in any stock mentioned.

Please see these related FB articles:

Facebook: 9 Companies Learn the Hard Way About Social Media

Facebook’s Graph Search Raises Privacy Flags

Facebook is Among 3 Web 2.0 Companies We Analyze

Dividend Stock Alert - Billionaire Robbins' Top Dividend Idea With 70% Upside Potential

Get Paid 3.5% Per Year While Waiting For The Stock Appreciate 70%

Larry Robbins' Glenview Capital Opportunity Fund returned 101.7% in 2013 and Robbins personally made $750 million. The same fund returned 25.3% in 2014. In this FREE REPORT we will share Robbins' top dividend idea that yields 3.5% and has been increasing its dividends for 39 consecutive years. Robbins thinks the stock has the potential to appreciate 70%.

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!