Facebook target lowered to $138 and Alphabet (GOOG) target lowered to $1040 at Pivotal Research Group (159.79)
- Pivotal Research Group lowers their FB tgt to $138 from $152 and their GOOG tgt to $1040 from $1110. Firm notes that ahead of 1Q18 earnings we update our price targets and review current thoughts on the use of data in digital advertising. They reviewed some potential implications for Facebook and Google in particular and updated price targets for both of those companies. New price targets reflect higher costs of capital due primarily to the higher risk-free rates used in their models. Their recommendations are unchanged (with Alphabet Hold-rated and Facebook Sell rated) with price targets reduced. Their Facebook price target is reduced by more than its peers, to $138 vs. $152 previously to reflect incremental deceleration in revenue growth towards the end of 2018 and generally higher costs than previously incorporated in our models