Shares of Facebook Inc. rallied 0.9% in premarket trade Wednesday, after MKM Partners analyst Rob Sanderson doubled-down on his bullish stance, suggesting investors be “aggressive buyers” of the stock given historic low valuation and conservative expectations. He reiterated his buy rating and stock price target of $240, which is 29% above Tuesday’s closing price of $173.15. “We find [Facebook] shares highly attractive while investors debate the impact of an expected decline in engagement, revenue growth deceleration and an elevated spending outlook,” Sanderson wrote in a note to clients. The stock has declined 7.4% since Facebook reported after the Jan. 31 close fourth-quarter profit and revenue that beat expectations, while the S&P 500 has lost 5.7% over the same time. Sanderson said the stock is set up for an “excellent” 2018, as the messaging monetization ramp progresses and as the price-to-earnings ratio is at an all-time low. The stock has rallied 29% over the past 12 months while the S&P 500 has gained 14%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News