By Dhirendra Tripathi
Investing.com – Facebook (NASDAQ:) stock rose more than 1% Tuesday as Jefferies (NYSE:) analyst raised his target to $400 for the stock while maintaining a buy rating.
The new target is 17.5% higher than the stock’s current level of $340.50.
According to StreetInsider, analyst Thill believes the Street’s estimates for the social media’s second-quarter revenue are too conservative. Thill says ad demand from verticals like retail, travel and movies that were most affected by the pandemic has exceeded prior expectations.
“We remain positive on FB stock, as we see a clear pathway to $16+ EPS by FY22, which at a mid-20x multiple implies a $415+ stock (20%+ upside),” Thill wrote, according to StreetInsider.
Facebook expects second quarter 2021 year-over-year total revenue growth to remain stable or modestly accelerate relative to the growth rate in the first quarter of 2021.
The company’s financial year is the same as calendar year. Its ad revenue in the first quarter of 2021 rose 46% year-on-year to $25.43 billion and 10% year-on-year to $18.32 billion in the second quarter of 2020.
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