BAIRD RAISES PRICE TARGET OF FACEBOOK, STOCK RISES
Facebook’s stock is currently trading at 235.20-higher by 0.50% as compared to the previous closing price. In the pre-market trading session, the stock was trading higher by 0.2%. The stock has continued gaining after the opening bell.
Investment bank Baird raised its price target on the tech giant’s stocks to $300 a share from $240 per share. The investment bank, however, reiterated an outperform rating on stocks of Facebook. Baird’s price target represents an upside of about 28% from the stock’s previous closing price. Investment bank hikes its price target on stocks of Facebook based on an anticipated comeback in the digital ad market.
Baird also said that the second quarter is likely to represent the bottom for the tech giant. The investment bank also revised 2020 revenue and EPS estimates of Facebook, higher than the market expectation. Baird expects that the digital ad market will emerge stronger from the current environment and the tech giant is well-positioned to capitalize on these trends longer term. Stocks of Facebook have rallied around 15% so far in 2020.
On the technical front, the RSI is currently at 57.64% and suggests that the market can move in the upward direction. The current price is below the MA5. The current price is above the middle line of the Bollinger Bands and is heading upwards.
Overall Bias is Positive and short-term trades can be initiated with below mentioned Stop Loss and Profit targets.
TRADE SUGGESTION- LIMIT BUY AT 235.00 TAKE PROFIT AT 238.00 STOP LOSS AT 233.50