There's been plenty of hand-wringing on Wall Street in recent months over whether Facebook is starting to feel the heat from competitors like Snapchat and whether it can keep up its dizzying growth in ad revenue. Don't sweat it, say analysts at Citi, who say that the company passed its "stress test," reports Bloomberg. In a note to clients, the bank increased its stock price target from $148 to $158, noting:
In recent months investors have grown concerned about the possible slowdown in ad load growth and the potential threat posed by Snapchat on Facebook's user and user engagement growth. We analyzed these concerns by stress testing key underlying Facebook model assumptions and concluded that Street forecasts not only appear reasonable but also potentially conservative.