- GBH Insights is also looking to buy the dip on Facebook (NASDAQ:FB), though it might take a while for the current data chaos to pan out.
- The firm is maintaining a rating of "Highly Attractive" and price target of $225, implying 41% upside.
- Facebook shares rebounded to finish up 0.4% after a daylong pummeling driven chiefly by morning news of an FTC investigation.
- The FTC news added "further agita to the Cambridge inferno that has created a dark cloud over Facebook's stock," GBH says, and it expects rangebound trading as regulators, users and advertisers work through the thorny details.
- But laying out two scenarios -- this is either a golden buying opportunity to get on an unparalleled social media user base, or it's a seminal negative moment that changes Facebook's business model and growth trajectory -- GBH ultimately sides with a relatively trouble-free emergence.
- "We believe the stock will make the climb back to the $180-$200 range as the dust settles over the next few quarters with fundamentals remaining on track despite this representing the darkest chapter for Facebook and Zuckerberg in its 14-year history," the firm says.
- Earlier, Wells Fargo (NYSE:WFC) also said the sell-off has been overdone and set a $230 price target.
- Now read: Facebook Cannot Be Trusted Again
Original article