JPMorgan($195.Price target) Says Facebook Is a Top Stock Pick For 2019 -- Barrons.com
10:06 am ET January 8, 2019 (Dow Jones) Print
By Tae Kim
JPMorgan says it believes the price of Facebook's beleaguered stock is due for a big turnaround this year.
The firm's analyst Doug Anmuth reiterated his Overweight rating for the social media giant's shares, citing positive results from its survey of internet users. Facebook is one of the firm's "Best Ideas" for 2019, Anmuth said.
"We view core FB as stickier than many think, with recent metrics mostly stable and our proprietary survey work showing solid engagement, while Instagram continues to grow rapidly," he wrote on Tuesday in a note titled "We Expect Facebook To Climb The Wall Of Worry."
Facebook stock was up 3.2% to $142.46. Anmuth reaffirmed his target of $195 for the stock's price.
The analyst said the bank's latest survey of 1,065 U.S. internet users revealed strong usage for the company's social media platforms. He noted 88% of the respondents said they use Facebook. Moreover, the survey showed 70% of the Facebook users said their usage had increased or stayed the same over the past 12 months.
Anmuth also cited Facebook's valuation of 16 times estimated 2020 earnings per share. "We believe valuation is compelling," he wrote. There are "Multiple emerging revenue opportunities in FB/IG Stories, Messenger, WhatsApp, FB Watch/IGTV."
Facebook shares have slid more than 30% since the summer as the Cambridge Analytica data-privacy scandal has continued to reverberate. Its shares dropped significantly in July after the company projected reduced long-term profitability because of increased security and content-review expenses.
Write to Tae Kim at tae.kim@barrons.com
(END) Dow Jones Newswires
January 08, 2019 10:06 ET (15:06 GMT)
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