Facebook Chairman and CEO Mark Zuckerberg testifies at a House Financial Services Committee hearing in Washington, October 23, 2019.
Erin Scott | Reuters
Here are the biggest calls on Wall Street on Tuesday:
Credit Suisse raised its price target on Facebook to $260 from $250
Credit Suisse raised its price target on Facebook ahead of the company’s report and said it saw a return to free cash flow growth in 2020.
“With 3Q results come management’s expectations for operating expense and capital expenditures for the following year and as we have been expecting for some time, our primary focus is a return to FCF growth in 2020 after a two-year period of investment. Our checks with advertisers continue to suggest minimal deceleration for US budgets coupled with ongoing headwinds in Europe.”
Bank of America downgraded GrubHub to ‘underperform’ from ‘buy’
Bank of America double downgraded the stock after the company’s earnings report and said the delivery market was increasingly “irrational.”
“We are downgrading GRUB to Underperform from Buy as we now expect higher customer acquisition cost but also potentially shorter lifetime values for acquired customers driven by lower order frequency and repeat rates. The food delivery market is increasingly irrational as competitors flood the market with rewards and incentives, making online diners less loyal.”