Guggenheim upgrades Facebook to Buy with $200 price target
Guggenheim analyst Michael Morris upgraded Facebook to Buy from Neutral and raised his price target for the shares to $200 from $175. The social media giant closed yesterday down 66c to $173.54. Investors will continue to gain comfort with the incremental financial risk created by Facebook's content and privacy concerns, Morris tells investors in a research note. Further, the analyst believes the company's usage trends have remained "solid" and sees the potential for commerce and messaging monetization opportunities "as attractively priced within shares." Morris expects Facebook shares to outperform his broader Media & Entertainment coverage given its "above-average growth rate at a modest premium to overall market valuation."