[ by Melanie Gretchen ] Facebook underwriters can begin issuing research reports on the company, now that the 40-day restriction period on publishing research has been lifted.  Given the turbulent events of the past 40 days, and the depressed state of Facebook shares - Thursday's closing price was $31.36, down 87¢ (2.7%) and still way below the $38 IPO share price, it's anyone's guess as to whether the firm has supporters or detractors. This much we know, 8 of 18 banks reviewed it favorably. Performance Report. Eight banks' analysts, including Facebook's 3 lead underwriters - Morgan Stanley, JPMorgan Chase and Goldman Sachs Group - rated the stock a "buy." [C-I Note: Sure, if they loved FB at $38, imagine the stock's upside potential at $31.36.] Nine analysts rated Facebook a "hold", meaning investors should avoid buying more yet hang onto shares they currently own.  BMO Capital Markets, marked it with the equivalent of a rare "sell" rating. Where Facebook Fits In. The company wasn't well received in context, according to capital markets research and advisory firm Ipreo Inc, which found in a study that, of the 700 or so U.S.-listed companies that went public from 2006 to 2011, 71% received a "buy" rating on average;  28% were rated as "hold" on average.  [C-I Note: The 28% is assuredly not where Mark Zuckerberg had in mind.] However, Facebook is faring well among large underwriters in comparison to recent technology IPOs.  Groupon suffered a similar fate - it traded 17% higher than its IPO price one day before the 40-day research restriction was lifted.  It received an "equal-weight," or "neutral," rating from its lead underwriter, Morgan Stanley.  [C-I Note: Granted, Groupon did better than Facebook, whose stock is down from its IPO price.] Some attributed Facebook's results to the still-stalled market.  The "holds" issued on Wednesday note significant "uncertainty" with Facebook's revenue-generation business model," said Georgetown finance professor Reena Aggarwal - at the McDonough School of Business,  She added that tough market conditions may have also been a contributing factor. The Face(book) of Potential? Underwriters JPMorgan and Goldman set price targets of $45 over the next 18 months, and $42 over the next year, respectively.

"We believe Facebook's virtual ownership of the social graph, strong competitive moat, and unwavering focus on the user experience position the company to significantly improve monetization over time and to become an enduring, blue-chip company built for the long term."-- Doug Anmuth, Internet analyst at JPMorgan.

For its part, Goldman predicted Facebook's users, currently at 901 million, will reach 1.54 billion by the end of 2014, about a 70% growth.  They also said concerns over "Facebook fatigue" were overstated. Lead underwriter Morgan Stanley, while recommending purchase of the stock, project its target price over the next 12 months at $38, which is not a glowing endorsement.   Among their concerns, is the key risk of advertising pricing. Cause for Concern. Detractor BMO analyst Daniel Salmon said attributed his "underperform," or sell rating to concerns about Facebook's adverting revenue.  He expects the company to trade down to $25, while Credit Suisse projects a price target of $34 with its "neutral" rating.     [WSJ, 6/28/12]