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upgrade is based on 1) the expectation for increasing monetization driven by new ad formats (e.g. mobile app installs, unpublished page posts); 2) increasing ad load - we believe Facebook constrained its ad load in 4Q; 3) increasing mobile ad adoption -we believe our estimate for 6% q/q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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