Analysts warn that Facebook's (NASDAQ:FB) reported Q2 ad revenue deceleration could pressure the stock.
Morgan Stanley analyst Brian Nowak notes that the 10% ad revenue growth in July (and matching current quarter forecast) "is a notable step down from our estimated ~15% Y/Y growth in June."
Morgan Stanley maintains an Overweight rating on FB and raises the target from $270 to $285, citing the company's investments in new revenue drivers.
Susquehanna's Shyam Patil thinks the Q3 ad revenue forecast has a "healthy amount of cushion for upside potential" since Facebook tends to guide on the conservative side.
The firm maintains a Positive rating and lifts FB's target from $285 to $310, expecting long-term ad revenue growth and calling FB a core holding.