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Facebook Gains ~1% on Deutsche Bank’s Price Target Upgrade

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Facebook stock upgrade

Facebook stock (FB) rose around 1% in pre-market trading today after Deutsche Bank raised its price target to $230 from $220 on the stock on additional advertising revenue opportunities. Meanwhile, Deutsche Bank analyst Lloyd Walmsley has reiterated his “buy” rating on the stock.

The new target reflects upside potential of 22.6% from the company’s closing price of $187.66 on June 26. Facebook stock gained 43.2% in the year-to-date period as of June 26.

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Walmsley’s view on Facebook

Per a CNBC report, Walmsley stated that Facebook has “several levers” that could boost the stock price.

Per another source, Walmsley is optimistic about the company’s Watch video platform, which has the potential to move the company’s daily active users higher than Snapchat by 2019. Facebook’s daily active users reached 1.56 billion at the end of the first quarter.

Last week, Facebook announced that it’s expanding its Watch service and has teamed up with global publishers to bring their content to the Watch platform. Plus, the analyst believes Watch could contribute $5 billion in revenues by 2021.

Walmsley is also bullish on the new Instagram Checkout capabilities that could result in higher ad spending during the holidays.

Plus, the company’s ad units and pricing for its Stories feature content are, reportedly, improving. They’re expected to drive revenues as both Facebook and Instagram users shift to Stories posts over traditional news-feed content.

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