Axiom Lifts Facebook’s Target To $155 As It’s Consolidating The Majority Of Economics Of Media’s Ad Shift

Courtesy of Benzinga.

Facebook Inc (NASDAQ: FB) delivered a strong start to the year, with 1Q16 results ahead of expectations. Axiom’s Victor Anthony maintained a Buy rating for the company, while raising the price target from $150 to $155.

Facebook’s 1Q16 results were significantly ahead of Axiom’s above-consensus estimates. Analyst Victor Anthony commented that it has become evident that Facebook and Alphabet Inc (NASDAQ: GOOGL) were “consolidating the majority of the economics of the ad shift from traditional media formats to online.” He recommended adding both stocks today, especially on any pressure on shares resulting from the overall market volatility.

In the longer-term, Facebook and Alphabet are likely to compete aggressively. Anthony added, “Facebook is in the early innings of becoming the world’s largest communications and entertainment platform, and has multiple future monetization levers, and as such is well-positioned in this race.”

Estimates Raised

The revenue estimates for 2016 and 2017 have been raised from $26,036 million to $26,446 million and from $34,252 million to $35,223 million, respectively. The non-GAAP EPS estimates for 2016 and 2017 have been raised from $3.23 to $3.38 and from $4.33 to $4.44, respectively.

Posted-In: axiom Victor AnthonyAnalyst Color Long Ideas Price Target Reiteration Analyst Ratings Trading Ideas