Facebook Stock Target Raised To $120, Analyst Says Buy

Facebook Inc.'s price target was raised to $120 from $105 at MKM Partners on Tuesday on the social network's user growth and monetization progress in its most recent fiscal quarter. Analyst Rob Sanderson reiterated a buy rating on the stock, citing user growth that he said "continues to impress." Facebook added 49 million monthly unique investors in its most recent quarter, growing at a rate above 13%. More impressive, said Sanderson, is that around 968 million users visit the social network daily. While the analyst reeled in estimates on revenue growth slightly, citing currency headwinds and a deceleration in desktop ads, he continues to believe Facebook is the best positioned in the Internet sector for a "significant reallocation of marketing dollars" over the next decade. Shares of Facebook were up 0.6% to $94.53 in recent trade. Its shares have gained 16% over the last three months, outperforming the broader S&P 500, down 1.3%.