Facebook got a price target increase to a Street-high $385 from $355 at Deutsche Bank (DE:DBKGn), where analyst Lloyd Walmsley maintained a buy rating on the stock. Meanwhile, Twitter Inc (NYSE:TWTR) was upgraded to buy from hold at Truist Securities, with a price target raised to $74 from $64, according to StreetInsider.
While both companies are slightly higher for the year, tech has struggled as more people get vaccinated and life after lockdown starts to make a comeback, pushing investors into cyclical companies rather than pandemic darlings.
Facebook rose 1.3%, while Twitter was up 2.5%.
Deutsche Bank’s Walmsley bumped its revenue estimates higher for Facebook on positive feedback from advertisers, and recent positive commentary from Chief Executive Officer Mark Zuckerberg, with more ecommerce shifting to the platform.
“We would add to positions as we see a catalyst path that also includes benefits from the largest round of stimulus checks to date, more tests of non-skippable Stories ads, and the potential for FB to start monetizing Reels,” Walmsley wrote in a note.
Truist Securities analyst Youssef Squali said “tangible” progress on its product and tech platform will drive greater traction with users and advertisers. Squali sees higher revenue growth, an “exciting” roadmap with platform and operational improvements and growth in monetizable daily average users.
Twitter is also trading at an attractive valuation, Squali said.
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