NEW YORK (TheStreet) -- Facebook (FB) has had its price target increased to $85 from $80, Jefferies said Thursday. The firm said its revision was driven by accelerating revenue and soaring mobile ad business.
"FB continues to impress with the 4th straight quarter of accelerating revenue, a soaring mobile ad business (+258% Y/Y to $1.3B), meaningful margin expansion (82% gross mgn, +980bps Y/Y), the most users ever (1.28B), and the highest engagement ever (63% of users log in daily)," analysts wrote in the report.
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Separately, TheStreet Ratings team rates FACEBOOK INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate FACEBOOK INC (FB) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation."