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Analyst: Facebook Inc (FB) Is Actually Cheap Right Now, Based On Growth Trajectory

FB – Anthony DiClemente of Evercore ISI sees 30% upside for Facebook next year.

Facebook Inc (NASDAQ:FB) shares should rise 30% or more in 2018, amid a combination of rising market share and the expansion of the overall social media space.

That’s according to Evercore ISI analyst Anthony DiClemente, who put out a Buy call on FB today. CNBC has more details:

“Today’s leading tech companies are leveraging the internet to disrupt and take profits from large established industries, a dynamic that is driving real earnings and free cash flow growth,” DiClemente wrote to clients on Tuesday. “Beyond that, smartphone ubiquity, the transition from offline to digital marketplaces, and continued growth in user adoption of emerging/established digital platforms are providing fuel for the next legs of growth.”

The analyst, who worked previously for Nomura Instinet, initiated coverage on a slew of companies in the space Wednesday with most of the so-called FANG stocks among his favorites.

By issuing a $225 price target on Mark Zuckerberg’s social media giant Facebook, the analyst believes that the company’s shares will rise 30 percent over the next year.

DiClemente is also ultra bullish on Facebook-owned Instagram, which continues to grow by leaps and bounds. “Based on the company’s disclosure in late September, Instagram’s user base now stands at 800mn, a four-fold increase relative to just three years prior,” he said.

The analyst noted other bullish catalysts include Facebook Watch, its new streaming video effort, which the company is pumping over $1 billion into for original content, and overall growth of the digital ecosystem.

Facebook Inc shares were trading at $176.10 per share on Wednesday afternoon, up $3.27 (+1.89%). Year-to-date, FB has gained 53.06%, versus a 19.57% rise in the benchmark S&P 500 index during the same period.

FB currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #4 of 50 stocks in the Internet category.

FB at a Glance

FB Current POWR Rating™
Overall POWR Rating™
FB Current Price $139.53 3.00%
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FB Price Reaction

The day of this event (Dec. 6, 2017)
FB Closing Price$176.06 1.87%
FB Volume20,255,800
17.82% from avg
Leading up to this event
FB 1-mo return4.07%
After this event
FB 1-day return4.06%
FB 3-day return3.47%
FB 5-day return3.07%

FB Price Chart

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