Facebook: Jefferies views risk/reward as compelling

(CercleFinance.com) - Jefferies maintains a "buy" rating on the Facebook stock, with a target price of 230 dollars, after the social network's shares fell sharply on the user data scandal.


In a note sent to clients, the US broker said that headlines may continue to weigh on investor sentiment until the second half of 2018.

However, Jefferies does not think that these headwinds will impact the group's revenues.

"We think that the stock has downside to 150 dollars in our bear case," the broker said. "However, we see much greater upside (...) to our 230-dollar price target," it added.

In all, Jefferies views the risk/reward as compelling at current valuation levels for long-term investors.

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