Wall Street analysts give Facebook ‘lukewarm reception’
Washington: Social networking giant Facebook received an unusually lukewarm reception by Wall Street analysts on the first day they were allowed to issue their views of the firm’s stock.
Nearly a month after Facebook's botched IPO, at least 17 firms revealed a mostly tepid assessment of the company’s shares on Wednesday.
On average, analysts at the banks behind the IPO estimated the value of Facebook shares to be just under their 38 dollars debut, ABC News reports.
Goldman Sachs had valued the firms’ shares at 42 dollars, while analysts at JP Morgan Chase recommended a target of 45 dollars a share.
The lowest estimate, 25 dollars came from Daniel Salmon, a research analyst at BMO Capital.
The firm cited concerns about the pace of Facebook’s user growth.
Analysts at Facebook’s main underwriter, Morgan Stanley, recommended the same price Wall Street fixed for the shares when they first started selling.
It argued in a report released on Wednesday that the network's mobile transition would reap benefits in the long run.
Meanwhile, Facebook stock fell to 32.23 dollars on Wednesday, down about 3 percent from yesterday.
The shares had fallen more than 30 percent to 25 dollars shortly after their disastrous debut, though they have regained some of that ground.