Facebook (FB) Q2 Strong Despite FX, Goldman Sachs Notes; PT Lifted to $110

Goldman Sachs analyst Heather Bellini reiterated a Buy rating and boosted her price target on Facebook (NASDAQ: FB) to $110.00 (from $102.00) following strong Q2 results, with mobile ads leading the way with 74% revenue growth.

Bellini said on a constant currency basis, ad revenue growth of 55% yoy did not decelerate from last quarter. Further, currency was a $50mn greater headwind on total ad revenue than they were forecasting, suggesting constant currency upside of $95mn versus the beat of $25mn last quarter.

"We see Facebook’s mobile ad story to continue to be on a strong trajectory with potential upside drivers in 2H15 including Instagram, video, and dynamic product ads," the analyst said. Further, our field checks suggest a growing base of brand advertisers competing in auctions with traditional direct response marketers, which we see an incremental driver of pricing growth."

For an analyst ratings summary and ratings history on Facebook click here. For more ratings news on Facebook click here.

Shares of Facebook closed at $96.99 yesterday.

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