Facebook price target lowered to $208 at Credit Suisse ahead of quarterly result
Credit Suisse analyst Stephen Ju lowered his price target for Facebook to $208 from $210 ahead of quarterly results. The analyst notes that the stock thesis for Facebook shares at this point is similar to what he highlighted in 2017 heading into 2018, where the clearing data point for a more material recovery will likely be on the Q3 of 2019 results where the company will offer a CapEx outlook for 2020 to signal whether free cash flow will return to growth. Near-term and specific to Q4 of 2018 results, his advertiser checks continue to suggest modest deceleration for the Facebook app accompanied by ongoing budget share gains for Instagram. As for Stories, advertiser feedback for the core Facebook property, suggest adoption/experimentation will begin in earnest in Q1 of 2019, the analyst adds. Ju reiterates an Outperform rating on the shares.