FACEBOOK Analysts Think The Stock Is Going To Go Higher... Imagine That.
Today, over a month since the Facebook IPO debacle, analysts were able to tell the world whether or not they liked FB shares. Lead underwriter Morgan Stanley was liking shares at $38 the day of the IPO, where do you think they liked them at today? For those who weren't watching FB trade the first day, or were busy funding an account in hopes of backing up the truck on the biggest front loaded dump IPO we've ever seen, you would not have noticed the floor that was put in at $38. The powers that be were not going to leave home that day with egg on their face by letting FB close a tick below $38... and it didn't. So much for a free market. The day after the IPO and over the next few weeks the stock fell quicker than a drunk whose Friends secretly tied his shoes together, and proceeded to laugh furiously as he collapsed numerous times before ultimately figuring out what was causing him to fall.
And like that drunk FB was able to shake off the embarrassment of the IPO and these days finds its stock heading higher.
If Morgan Stanley was protecting that $38 figure and was so confident that FB was worth $38, what possibly could their Analyst price target be for FB? Ok, I'll save all your pent up excitement..... its $38!! Amazing! These guys at Morgan Stanley are simply brilliant. It gets better... the average Analyst estimate is $37.95. Astounding! Below are some popular analysts and their price targets for FB. Notice how all the prices are for FB trading higher. It's like every weatherman calling for the next 365 days to be sunny. Who needs college, a degree, and type of knowledge? Just buy buy buy.
Lets see what transpires over the next 12 months.
According to the average analyst estimate compiled by Bloomberg, Facebook shares “will increase to $37.95 over the next year, 5 cents less than the initial price set when shares began trading in May.”
JPMorgan, another lead Facebook underwriter, initiated coverage with an “overweight” rating and a $45 12-month price target.
“As the underlying social fabric of the Web, Facebook is a unique platform asset with strong network effects, a deep competitive moat, and unparalleled social context,” JPMorgan analysts wrote. “We believe the next phase of the Internet will be driven by data and powered by ubiquitous online access, and Facebook is well positioned here through its large and engaged user base, virtual ownership of the social graph, and unwavering focus on the user experience.”
Here’s a selection of other newly-released analyst reports on Facebook, via The Wall Street Journal. Facebook stock traded early Wednesday at $32.05, down 3% from the previous day’s close, and 13.5% below the IPO opening price.
- Goldman Sachs, also a lead underwriter, initiated coverage with a “buy” rating and a $42 12-month price target.
- RBC Capital Markets launched its coverage with an “outperform” rating and a $40 price target.
- Bank of America Merrill Lynch came in with a “neutral” rating, and $38 price target.
- Citigroup was also “neutral,” with a $35 price target.
- Barclays started its coverage with an “equal weight” rating and a $35 price target.