PhillipCapital has initiated coverage on Facebook with a “buy” call and target price of US$424 ($573.77), with expectations that the company’s earnings will grow heading into FY2022. 

Analyst Jonathan Woo writes in a Sept 27 note that the social media company’s PATMI is expected to grow at a CAGR of 19% till FY2022, supported by growth in Family Monthly Active People (MAP) and Family Average Revenue per Person (ARPP).  

Facebook’s Family MAP was up 14% y-o-y in FY2020, from 2.9 billion to 3.3 billion people. Correspondingly, Family (ARPP) was also up by 17% y-o-y, due to increases in digital ad spending.

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