Facebook (FB) Strong Q3 Shows It's 'Still the One', Goldman Sachs Says; PT Raised to $125

Goldman Sachs analyst Heather Bellini reiterated a Buy rating and lifted her price target on Facebook (NASDAQ: FB) to $125.00 (from $110.00) following strong Q3 results highlighted with accelerating ad revenue growth. Bellini said Facebok is "still the one."

Bellini notes total revenue of $4.50bn (+41% yoy, +51% in constant currency) was above consensus of $4.37bn (+36% yoy). Ad revenue of $4.30bn (45% yoy, +57% in cc) beat consensus of $4.18bn (+41% yoy), posting accelerating growth for the first time since 1Q14.

"We believe that Instagram, ad format innovation like carousel ads, and the proven advertiser ROI of the Facebook platform are driving accelerating adverting revenue growth. We see strong momentum into 4Q15 given the holiday season and worldwide rollout of Instagram (versus 3Q15 having a limited rollout of one month)."

The firm's CY16 ad revenue estimate increases from $21.4bn (+33% yoy) to $22.9bn (+39% yoy) while non-GAAP EPS estimate goes from $2.42 to $2.77.

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 $103.94 yesterday.

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