Moneycontrol
May 18, 2012 10:17 PM IST | Source: Reuters

Facebook gets early brokerage 'sell' rating

Facebook Inc received what may be its first "sell" rating on Friday, from Pivotal Research Group, which also set a target price of $30 for the stock.


Facebook Inc received what may be its first "sell" rating on Friday, from Pivotal Research Group, which also set a target price of USD 30 for the stock.


Shares in the No. 1 social network fizzled in their debut on Friday, managing an 18% gain before backtracking to trade close to their USD 38 initial public offering price.


"We are wary of the disconnect between revenue growth and operating/capital expense growth expectations," Pivotal analyst Brian Wieser said in a research note. "The market is pricing Facebook as a less risky asset than Google , which we believe is simply not the case."

Facebook shares were up nearly 8% to USD 40.82 on the Nasdaq.

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