Facebook shares gain for a sixth straight session on Tuesday, MoffettNathanson upgrades stock to “Buy” on “improving underlying fundamentals”

June 12, 2019 7:08 am

MoffettNathanson on Tuesday raised its rating on Facebook Inc (FB) from “Neutral” to “Buy”, as it cited “improving underlying fundamentals” and new opportunities for growth that could mitigate regulatory risks.

The firm has assigned a 12-month price target of $210 on the stock.

Facebook shares closed higher for a sixth consecutive trading session on NASDAQ on Tuesday. It has also been the sharpest daily surge since June 7th. The stock went up 1.88% ($3.28) to $178.10, after touching an intraday high at $179.98, or a price level not seen since May 31st ($180.54).

Shares of Facebook Inc have risen 35.86% so far in 2019 compared with a 15.11% gain for the benchmark index, S&P 500 (SPX).

In 2018, Facebook Inc’s stock went down 25.71%, thus, it underperformed the S&P 500, which registered a 6.24% loss.

MoffettNathanson analyst Michael Nathanson believes that Facebook could find big opportunity in messaging and commerce, or two undertakings which do not appear to have been priced in.

The analyst also highlighted the more successful monetization of ephemeral Stories content than initially expected.

Last but not least, Nathanson maintains the view that regulatory risk has been reflected in the current share price, while “antitrust action still seems unlikely given the focus of U.S. courts on proof of consumer harm.”

According to CNN Money, the 43 analysts, offering 12-month forecasts regarding Facebook Inc’s stock price, have a median target of $225.00, with a high estimate of $275.00 and a low estimate of $120.00. The median estimate represents a 26.33% upside compared to the closing price of $178.10 on June 11th.

The same media also reported that 36 out of 48 surveyed investment analysts had rated Facebook Inc’s stock as “Buy”, while 7 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for Facebook Inc (FB) are presented as follows:

Central Pivot Point – $169.75
R1 – $178.65
R2 – $183.96
R3 – $192.86
R4 – $201.77

S1 – $164.44
S2 – $155.54
S3 – $150.23
S4 – $144.93

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