MKM lifted its earnings estimates for FB through 2017, citing accelerating top-line growth that is setting a new standard for companies its size (although Alphabet may have something to say about that). Like many other analysts, the firm absolutely loved Facebook’s latest report, which blew even the most optimistic estimates out of the water.
Keeping their same 30x EPS valuation for the company in tact, MKM said the new earnings estimates justified a higher price target. Accordingly, the firm lifted its target from $150 to $165. That new target represents a 33% upside to the stock’s Friday closing price of $123.94 per share.
Facebook Inc (NASDAQ:FB) shares rose $0.19 (+0.15%) to $124.13 in premarket trading. FB has gained 18.64% year-to-date, tripling the returns of the S&P 500 in the same period.