Raymond James analyst Aaron Kessler upgraded Facebook (NASDAQ: FB [FREE Stock Trend Analysis]) this morning from Outperform to Strong Buy and gave shares a $37.00 price target.

In the report, Raymond James wrote, "Our upgrade is based on 1) the expectation for increasing monetization driven by new ad formats (e.g. mobile app installs, unpublished page posts); 2) increasing ad load - we believe Facebook constrained its ad load in 4Q; 3) increasing mobile ad adoption -we believe our estimate for 6% q/q mobile ad growth will prove conservative; and 4) an attractive risk/reward - with shares trading at 15x and 11x 2013 and 2014 EV/EBITDA estimates, respectively, vs. an estimated 25% five-year EBITDA CAGR, we believe shares are attractive at current levels."

Following the report, Facebook shares rose 1.72 percent in pre-market trading to $26.14.

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