Facebook (FB) PT Lowered to $200 at Oppenheimer

Oppenheimer lowered its price target on Facebook (NASDAQ: FB) to $200.00 (from $225.00) while maintaining a Outperform rating.

Analyst Jason Helfstein commented, "Decreasing target to $200 from $225 and maintaining our Outperform rating after Facebook reported light 2Q:18 results, challenging 2H:18 revenue outlook and expects 35% LT operating margins. Mgmt. called out three drivers for revenue guide (listed in order of magnitude, in our view): intentional shift of time-spend to FB Stories, currency headwind (3Q) & data privacy (GDPR). Most impactful item, FB Stories, most troublesome to us: not only does it move FB use-case closer to IG (sub-optimal for portfolio company), it continues trend of "everythingification" of FB app, after failed experiment with FB Live, lackluster early results for FB Watch and unclear outcome w/FB Marketplace. Still, valuation for high-quality tech asset appears compelling at 20x P/E; as such, we maintain our Outperform rating."

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