December 9, 2019 News Magazine

Facebook Share Price Target Cut on ‘Growing Global Scrutiny’

Bloomberg By Ryan Vlastelica

Facebook Inc.’s price target was slashed to $170 from $215 at Needham on Friday, which cited a number of potential headwinds, including “continued margin pressure (and headline risks) in the U.S. tied to data protection efforts.” Facebook is down 0.4 percent pre-market 3,500 shares.

There are “rising risks associated with growing global scrutiny, which may drive additional litigation costs and/or regulatory oversight,” analyst Laura Martin wrote to clients. She also cited the outlook for “minimal” earnings growth in 2019 and 2020, along with slower growth in Europe and a risk of higher taxes in France.

Needham kept its buy rating on the stock, citing Facebook’s dominance in mobile ads and the company’s “world class” data. Martin added that Facebook has a “pristine balance sheet that can withstand virtually any macro volatility.”

Separately, German broker DZ Bank downgraded Facebook to sell and cut its price target to $115 from $145, the lowest target on the Street.

Analysts have been cautious about Facebook for the past several months, as it has faced a number of controversies. Earlier this week, the social-media company was sued by the District of Columbia over a privacy breach. And the New York Times reported that Facebook let more than 150 companies access more personal data from users than it had previously disclosed.

Facebook has 41 buy ratings from analysts, along with 8 holds and 4 sells, according to Bloomberg data. The average price target is $187, which implies upside of more than 40 percent from current levels.

Banner
Related Posts

JD.com’s Liu Won’t Be Charged After Rape Investigation

December 23, 2018

December 23, 2018

By Gerrit De Vynck JD.com Inc. Chief Executive Officer Richard Liu won’t be charged in connection with a rape investigation in...

IBM Says No Evidence That ‘Sensitive’ Data Was Taken by Hackers

December 23, 2018

December 23, 2018

Bloomberg By Gerrit De Vynck and Ian King International Business Machines Corp. says it doesn’t have any evidence that hackers took “sensitive” company and...

Wall Street Quietly Shelves Its Bitcoin Dreams

December 24, 2018

December 24, 2018

Limbo—that’s where to find Wall Street when it comes to cryptocurrencies. Squeamish from the start about pursuing profits in one...

Comments
Leave a Reply

Your email address will not be published. Required fields are marked *