Tigress Upgrades Facebook To Strong Buy, Sees Bright Future For Co.

Courtesy of Benzinga.

Tigress Financial has upgraded Facebook Inc(NASDAQ: FB) to Strong Buy from Buy saying that the company’s dominance in the social media space continues to widen.

“Business Performance continues to accelerate driven by FB’s ongoing success in its efforts and ability to monetize its user base and service offerings through increasing advertising penetration, improving ad targeting, ad formats and incorporating video,” analyst Ivan Feinseth wrote in a note.

Feinseth expects revenue to increase over 40 percent to $28 billion over the NTM and EBITDAR to increase over 72 percent to $20 billion over the NTM.

Related Link: Facebook Once Again Decides To Alter News Feeds

The analyst noted the continued dominance of Facebook in social media platform as more than 1.65 billion people now use Facebook every month and 1.09 billion people use Facebook every day, with most of them using the mobile platform. The total user growth and more importantly user engagement is poised to grow.

Meanwhile, Facebook gets 80 percent of its revenue from mobile ads, a market that’s expected to grow over $100 billion by the end of 2016.

“Near-term growth will be focused on video, News Feed and Instagram ads. WhatsApp remains all about growth and engagement,” said Feinseth, who said artificial intelligence and virtual reality will drive Facebook’s future growth.

At the time of writing, shares of Facebook were essentially flat on the day, slightly up (0.10 percent) to $114.27.

Posted-In: Ivan Feinseth TigressAnalyst Color Long Ideas Upgrades Analyst Ratings Tech Trading Ideas