Grace Period Ends, Facebook Shares Fall
NEW YORK (TheStreet) -- Shares of Facebook(FB) dropped following the social network emerging from its "quiet period," as its underwriters initiated coverage on the stock.
Today is the first day analysts from the firms involved in underwriting the initial public offering could issue recommendations on Facebook. After 40 days on the sidelines, analysts issued mixed reviews about the stock's recovery from its $38 IPO price.
BMO Capital Markets was the most bearish on Facebook, rating shares "underperform" with a $25 price target. Conversely, Piper Jaffray was the most bullish, initiating coverage at "outperform" with a $41 price target. The average price target of the 32 analysts polled by Thomson Reuters is $38.33.
Facebook shares have traded between $25.52 and $45 since debuting on May 18. The stock's average trading volume is 68.6 million over the same period.
Shares were lower in Wednesday trade, off 1.33% to $32.66.
--Written by Nathalie Pierrepont in New York.
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