Facebook: Susquehanna recommends buying on dips

(CercleFinance.com) - Susquehanna maintains its "positive" stance on Facebook, with a price target of 250 dollars, saying that the management's comments about revenue deceleration should be viewed as "ultra conservative.
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To the question about whether Facebook is really headed into a period of massive growth deceleration, the broker said it is "highly unlikely," recalling that management has historically been very conservative with its forward commentary.

In a research note, Susquehanna recommends buying the shares on dips.

"With the stock at around 174 dollars trading at less than 11x 2019 EBITDA, the dislocation is overdone... especially when considering Alphabet, which is growing slower, has lower margins and is trading at about 13x 2019 EBITDA... a 20% premium to Facebook," it said.

The broker hence believes Facebook should garner a premium to get to its 250-dollar price target.

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