Facebook price target raised to $215 from $195 at Baird
Baird analyst Colin Sebastian raised his price target for Facebook to $215 from $195 following last night's Q1 results and keeps an Outperform rating on the shares. The stock in premarket trading is up 8%, or $15.42, to $198.00. Facebook reported better than expected revenue, as pricing headwinds from Instagram Feed/Stories mix was offset by stronger user engagement, Sebastian tells investors in a research note. Further, management reduced 2019 expense growth guidance to reflect better investment visibility and lower new headcount, adds the analyst. He believes Facebook will continue to benefit disproportionately from its scale and resource advantages relative to most competitors. Sebastian points out, however, that Facebook management expects revenue growth to decelerate sequentially through the end of 2019 due to the impacts from re-targeting headwinds and internal policies.