Facebook (NASDAQ:FB) is on watch after being appraised favorably by Oppenheimer.
The firm says 3P data and proprietary checks indicate stronger than anticipated recovery in FB advertising and it has a bullish view on Shops as a long-term catalyst.
Granular details from analyst Jed Kelly: “Per Gupta Media, Sept. global CPMs were 7% above pre-COVID-19 levels, with positive commentary on US budget recovery from proprietary checks. Additionally, we are very bullish on FB’s Shops/eCommerce initiative, likely seeing a COVID-19 tailwind. We initially size the eCommerce/advertising opportunity ~$25–50B in revenue, capitalizing on COVID-19- induced acceleration of the secular shift of retail moving to online channels and SMBs expediting online investments. We see near-term upside from transaction fees and long-term WhatsApp/Messenger integration for CRM/payments opportunities. Target assumes 14x ’21E EBITDA; values WhatsApp, Messenger and Oculus at $40B.”
Oppenheimer hikes its price target on Facebook to $300 from $270 prior. The average Wall Street price target is $290.30.
Shares of Facebook are up 1.15% premarket.