Facebook got some more good news on Wall Street ahead of its fourth-quarter earnings call Wednesday), as Raymond James & Associates Analyst Aaron Kessler raised his rating on the social network’s stock to “outperform” from “market perform” and set a target price of $38 per share, matching the stock’s debut price.
According to Forbes, Kessler also:
- Increased his fourth-quarter revenue forecast for Facebook to $1.57 billion, slightly above the consensus figure of $1.5 billion.
- Pegged non-GAAP (generally accepted accounting principles) profit at 18 cents per share, above Wall Street’s estimate of 16 cents.
- Projected fourth-quarter ad revenue at $1.35 billion, compared with the consensus of $1.28 billion.
Forbes reported that Kessler based his optimism about the social network on three factors:
- Expectation for increased monetization, driven by mobile, new ad formats, and international.
- Signs of improving usage trends, driven by mobile.
- Expectations for upside to consensus estimates.
Readers: Do you think there will be any surprises in Wednesday’s earnings call?