Forget the Botched IPO: Facebook Inc. (FB) Is Back

The analyst reiterated Facebook at Buy with a price target of $37.

LinkedIn, Facebook’s Jobs App competitor, is reporting earnings on Feb. 7. Analysts are optimistic that LinkedIn, which also is upping its game in professional networking, will beat analyst estimates for the December quarter.

Meanwhile, Google introduced product listing ads in place of Google Adwords in an attempt to counter Facebook’s progress in the search business, an event that saw it cannibalize on high margin Adwords business. Nonetheless, Google’s earnings did beat analyst estimates for the December quarter.

Bottom Line

Facebook’s stock price is back on track as it now oscillates on the $30 per share mark. The company has recovered to nearly double its low of $17.55, realized in September.  Additionally, analysts seem to be bullish on the company’s stock price and outlook.

A lot of expectations are placed on the company FBX, and Sponsored stories, as analysts remain cautious on Jobs App and Search. LinkedIn and Google command those two businesses, respectively, but that could be only for the moment. If Facebook could maneuver a successful path through, then its wide user base could be a powerful tool against Google and LinkedIn.

A majority of analysts have price targets that breach the $30 per share mark, and have attached a Buy rating or equivalent on the stock. Some of the firms, for instance Deutsche Bank and Topeka Capital, have a price target of $40, while Piper Jaffray’s target is at IPO price. These are signs of optimism from analysts, which should trickle down to the investment fraternity in a matter of time.

Perhaps there is still time to buy this stock as it claws its way back to $38 and beyond.

The article Forget the Botched IPO: Facebook Is Back originally appeared on Fool.com and is written by Nicholas Kitonyi.

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