Submitted by Reggie Middleton on 06/27/2012 08:10 -0400
Credit Suisse
Merrill
Morgan Stanley
None
Reggie Middleton
There's an awful lot of chatter in the blogoshpere over the last 48 hours discussing the remote possibility that Morgan Stanley would be able to defend the Facebook offering as properly priced. PUHLEASE! In case my readers and subscribers don't recall my many warnings on this company and the hype job put on it by Goldman and Morgan - reference As I Promised Last Year, Facebook Is Being Proven To Be Overhyped and Overpriced!, let's run through a quick refresher course.
As is often said, a picture is worth more than 982 words...
charts,,,,,,,,,,,,,,,,,
Keep in mind that a deluge of supply (in terms of common shares) is about to hit the market which should do wonders for this extremely richly valued price. So, the question remains, "Is Facebook Yet a 'Buy' (in Sell Side Wall Street huckster parlance)?" Well, the sell side seems to believe so. Check this out...
6 Buys, 3 Neutrals
Average Price Target = $39
BofA/Merrill – Neutral - $38 PT
Goldman Sachs – Buy - $42 PT
Oppenheimer – Outperform - $41 PT
JPMorgan – Overweight - $45 PT
Piper Jaffray – Overweight - $41 PT
Wells Fargo – Outperform - $37-$40 Range
Credit Suisse – Neutral - $34 PT
Citigroup – Neutral - $35 PT
Morgan Stanley – Overweight - $38
The specific, numerical, actionable answer from my team is the purview of paying subscribes only, but we can always throw some common sense on the topic for free - as per pages 6 and 7 of our March Facebook valuation report -icon FB IPO Analysis & Valuation Note - update with per share valuation (317.36 kB 2012-05-21 09:43:30), pages 6, 7 and 10.
Of course Facebook enthusiasm was burning hot. The coals in the "investor" (and I put this lightly) fire are being stoked by none other than the sell side agents doing God's work, among others. It appears as if those who stoked said coals may be making another run at it. Well, it's just a simple as this. Who are you going to believe, the sell side hype machine or your lyin' eyes (AKA, BoomBustBlog performance and accuracy)? Reference Did Reggie Middleton, a Blogger at BoomBustBlog, Best Wall Streets Best of the Best?
http://www.zerohedge.com/contributed/2012-06-27/facebook-bubble-blowing-justification-exercises-commence-today
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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