Facebook Stock Price Is Set to Extend Gains, Barclays Say

Facebook (NYSE: FB) stock price rallied sharply since the beginning of this year. The shares have breached $200 level at one stage before retreating to $190 range. Its shares are up 35% year to date.

Despite Libra related headwinds, the upside momentum is backed by traders’ confidence in future fundamentals. Increasing financial numbers are adding to Facebook stock price momentum. Some market pundits suggest investors buy FB shares ahead of earnings.

FB Facebook, Inc. daily Stock Chart

Barclays Set Higher Facebook Stock Price Target

Barclays claims that Facebook is presenting an attractive buying opportunity ahead of earnings.

Its analyst Ross Sandler believes demand for Facebook products remained strong during the quarter – which could support the share price. He has set a price target of $240 with an Overweight rating.

Positioning is far less crowded and the sentiment is mixed compared to prior quarters, which we think helps the set-up,” analyst Ross Sandler says, adding advertisers are mostly ignoring the gloomy regulatory headlines.

RBC has also set a Facebook price target at $260 with Outperform ratings, citing intrinsically attractive valuation and strong fundamentals.

Financial Growth Support Uptrend

The company is likely to generate double-digit growth in revenue and earnings. It had generated year over year revenue growth of 28% to $16.9 billion in the latest quarter. Its daily active users grew to 1.59B, representing 8% Y/Y growth. Monthly active users jumped 8% year over year to 2.41B.

Facebook Stock Price Is...

The company appears in solid position to invest in growth opportunities.

Its cash and cash equivalents stood at $48.60 billion at the end of the latest quarter. It had made several small acquisitions in the past few months. In addition, it has launched innovative products for users. For instance, Instagram announced a new camera-first messaging app.

Overall, the Facebook stock price appears like a good play for value investors. Its low valuations and the double-digit growth in financial numbers are among the biggest catalysts. Therefore, several analysts are suggesting to buy this stock.

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    Based in Saudi Arabia, Siraj has a strong understanding of and passion for accounting and finance. He has worked for international clients for many years on several projects related to the stock market, equity research and other business, accounting and finance related projects. Siraj is a published financial analyst on the world's leading websites including SeekingAlpha, TheStreet, MSN, and others.

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