Facebook Stock Looks Poised to Rally Back to $300, Says 5-Star Analyst, , on September 25, 2020 at 8:08 pm

By
On September 25, 2020
Tags:

Among the devastating impacts of COVID-19 on businesses, advertising budgets have been hit hard. Even Wall Street heavyweight Facebook’s (FB) advertising business has been battered by the pandemic, with an advertiser boycott also weighing on the segment.In the second quarter of 2020, the company’s top 100 advertisers accounted for 16% of its revenue, which is a lower percentage compared to a year ago. That being said, based on recent data, the tide could be turning for the social media giant.Writing for Oppenheimer, 5-star analyst Jason Helfstein points to 3P data and recent checks as indicating a stronger-than-expected recovery in advertising is taking place. According to Gupta Media, global CPMs for September are trending 7% above the average pre-COVID-19 rate. Additionally, Q3 quarter-to-date global CPMs are -16%, compared to the pre-COVID average. This is an improvement from Q2’s -37%, and an impressive rebound from the March low of -70%.On top of this, checks suggest that budgets allocated to FB advertising could return to Q1 2020 levels in FY21. Helfstein added, “We see this further supported by Standard Media Index’s August digital spending 18% year-over-year, the first month of growth since February, and positive SMB survey results from Borrell Associates.”Representing another major component of Helfstein’s bullish thesis, he argues FB Shops is benefiting from the COVID-19 tailwind, and could ultimately be a $25–50 billion revenue opportunity. To support this claim, he cites the shift to online shopping that was accelerated by COVID-19. Based on U.S. census data, online share gains accelerated by 250 basis points, with it now accounting for 17% of total retail spending excluding food. Shops has also been capitalizing on a faster SMB web-presence build-out, in Helfstein’s opinion.Helfstein further noted, “We see near-term upside from transaction fees and long-term WhatsApp/Messenger integration for CRM/payments opportunities.”Wrapping it all up, Helfstein opined, “Shares trading 5% below upper-bound of 24-month historical standard deviation NTM EBITDA at 16x. We see upside to Street FY21 revenue/EBITDA estimates on headcount growth decelerating and Shops could be FY21 revenue catalyst.”Based on all of the above, Helfstein keeps an Outperform rating on the stock. Not to mention he bumped up the price target from $270 to $300. Should his thesis play out, a potential twelve-month gain of 18% could be in the cards. (To watch Helfstein’s track record, click here)Turning now to the rest of the Street, few analysts beg to differ. FB’s Strong Buy consensus rating breaks down into 31 Buys, 4 Holds and 1 Sell. The $295.56 average price target brings the upside potential to 16%. (See Facebook stock analysis on TipRanks)To find good ideas for tech stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.,

Facebook Stock Looks Poised to Rally Back to $300, Says 5-Star AnalystAmong the devastating impacts of COVID-19 on businesses, advertising budgets have been hit hard. Even Wall Street heavyweight Facebook’s (FB) advertising business has been battered by the pandemic, with an advertiser boycott also weighing on the segment.In the second quarter of 2020, the company’s top 100 advertisers accounted for 16% of its revenue, which is a lower percentage compared to a year ago. That being said, based on recent data, the tide could be turning for the social media giant.Writing for Oppenheimer, 5-star analyst Jason Helfstein points to 3P data and recent checks as indicating a stronger-than-expected recovery in advertising is taking place. According to Gupta Media, global CPMs for September are trending 7% above the average pre-COVID-19 rate. Additionally, Q3 quarter-to-date global CPMs are -16%, compared to the pre-COVID average. This is an improvement from Q2’s -37%, and an impressive rebound from the March low of -70%.On top of this, checks suggest that budgets allocated to FB advertising could return to Q1 2020 levels in FY21. Helfstein added, “We see this further supported by Standard Media Index’s August digital spending 18% year-over-year, the first month of growth since February, and positive SMB survey results from Borrell Associates.”Representing another major component of Helfstein’s bullish thesis, he argues FB Shops is benefiting from the COVID-19 tailwind, and could ultimately be a $25–50 billion revenue opportunity. To support this claim, he cites the shift to online shopping that was accelerated by COVID-19. Based on U.S. census data, online share gains accelerated by 250 basis points, with it now accounting for 17% of total retail spending excluding food. Shops has also been capitalizing on a faster SMB web-presence build-out, in Helfstein’s opinion.Helfstein further noted, “We see near-term upside from transaction fees and long-term WhatsApp/Messenger integration for CRM/payments opportunities.”Wrapping it all up, Helfstein opined, “Shares trading 5% below upper-bound of 24-month historical standard deviation NTM EBITDA at 16x. We see upside to Street FY21 revenue/EBITDA estimates on headcount growth decelerating and Shops could be FY21 revenue catalyst.”Based on all of the above, Helfstein keeps an Outperform rating on the stock. Not to mention he bumped up the price target from $270 to $300. Should his thesis play out, a potential twelve-month gain of 18% could be in the cards. (To watch Helfstein’s track record, click here)Turning now to the rest of the Street, few analysts beg to differ. FB’s Strong Buy consensus rating breaks down into 31 Buys, 4 Holds and 1 Sell. The $295.56 average price target brings the upside potential to 16%. (See Facebook stock analysis on TipRanks)To find good ideas for tech stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

,

Instant Quote

Enter the Stock Symbol.

Select the Exchange.

Select the Type of Security.

Please enter your First Name.

Please enter your Last Name.

Please enter your phone number.

Please enter your Email Address.

Please enter or select the Total Number of Shares you own.

Please enter or select the Desired Loan Amount you are seeking.

Please select the Loan Purpose.

Please select if you are an Officer/Director.

High West Capital Partners, LLC may only offer certain information to persons who are “Accredited Investors” and/or “Qualified Clients” as those terms are defined under applicable Federal Securities Laws. In order to be an “Accredited Investor” and/or a “Qualified Client”, you must meet the criteria identified in ONE OR MORE of the following categories/paragraphs numbered 1-20 below.

High West Capital Partners, LLC cannot provide you with any information regarding its Loan Programs or Investment Products unless you meet one or more of the following criteria. Furthermore, Foreign nationals who may be exempt from qualifying as a U.S. Accredited Investor are still required to meet the established criteria, in accordance with High West Capital Partners, LLC’s internal lending policies. High West Capital Partners, LLC will not provide information or lend to any individual and/or entity that does not meet one or more of the following criteria:

1) Individual with Net Worth in excess of $1.0 million. A natural person (not an entity) whose net worth, or joint net worth with his or her spouse, at the time of purchase exceeds $1,000,000 USD. (In calculating net worth, you may include your equity in personal property and real estate, including your principal residence, cash, short-term investments, stock and securities. Your inclusion of equity in personal property and real estate should be based on the fair market value of such property less debt secured by such property.)

2) Individual with $200,000 individual Annual Income. A natural person (not an entity) who had individual income of more than $200,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

3) Individual with $300,000 Joint Annual Income. A natural person (not an entity) who had joint income with his or her spouse in excess of $300,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

4) Corporations or Partnerships. A corporation, partnership, or similar entity that has in excess of $5 million of assets and was not formed for the specific purpose of acquiring an interest in the Corporation or Partnership.

5) Revocable Trust. A trust that is revocable by its grantors and each of whose grantors is an Accredited Investor as defined in one or more of the other categories/paragraphs numbered herein.

6) Irrevocable Trust. A trust (other than an ERISA plan) that (a)is not revocable by its grantors, (b) has in excess of $5 million of assets, (c) was not formed for the specific purpose of acquiring an interest, and (d) is directed by a person who has such knowledge and experience in financial and business matters that such person is capable of evaluating the merits and risks of an investment in the Trust.

7) IRA or Similar Benefit Plan. An IRA, Keogh or similar benefit plan that covers only a single natural person who is an Accredited Investor, as defined in one or more of the other categories/paragraphs numbered herein.

8) Participant-Directed Employee Benefit Plan Account. A participant-directed employee benefit plan investing at the direction of, and for the account of, a participant who is an Accredited Investor, as that term is defined in one or more of the other categories/paragraphs numbered herein.

9) Other ERISA Plan. An employee benefit plan within the meaning of Title I of the ERISA Act other than a participant-directed plan with total assets in excess of $5 million or for which investment decisions (including the decision to purchase an interest) are made by a bank, registered investment adviser, savings and loan association, or insurance company.

10) Government Benefit Plan. A plan established and maintained by a state, municipality, or any agency of a state or municipality, for the benefit of its employees, with total assets in excess of $5 million.

11) Non-Profit Entity. An organization described in Section 501(c)(3) of the Internal Revenue Code, as amended, with total assets in excess of $5 million (including endowment, annuity and life income funds), as shown by the organization’s most recent audited financial statements.

12) A bank, as defined in Section 3(a)(2) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

13) A savings and loan association or similar institution, as defined in Section 3(a)(5)(A) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

14) A broker-dealer registered under the Exchange Act.

15) An insurance company, as defined in Section 2(13) of the Securities Act.

16) A “business development company,” as defined in Section 2(a)(48) of the Investment Company Act.

17) A small business investment company licensed under Section 301 (c) or (d) of the Small Business Investment Act of 1958.

18) A “private business development company” as defined in Section 202(a)(22) of the Advisers Act.

19) Executive Officer or Director. A natural person who is an executive officer, director or general partner of the Partnership or the General Partner, and is an Accredited Investor as that term is defined in one or more of the categories/paragraphs numbered herein.

20) Entity Owned Entirely By Accredited Investors. A corporation, partnership, private investment company or similar entity each of whose equity owners is a natural person who is an Accredited Investor, as that term is defined in one or more of the categories/paragraphs numbered herein.

Please read the notice above and check the box below to continue.

Singapore

168 Robinson Road
#12-01 Capital Tower
Singapore 068912

New York

Coming Soon!

Dubai

Coming Soon!

Market Coverage