Facebook (Nasdaq: FB), the No. 1 social network,priced its May 17 initial public offering of 421 million shares at $38, which netted $16 billion for the company. REUTERS

Shares of Facebook (Nasdaq: FB), the No. 1 social network, set a new low of $27 on Thursday, as the stock's rout continues.

By later morning, Facebook was trading at $27.27, down 92 cents, despite two separate buy recommendations from Wall Street banks that didn't participate in its $16 billion initial public offering two weeks ago.

At Wedbush, analyst Martin Pachter rates the Menlo Park, Calif., company outperform, with a 12-month target of $44. He said Facebook's long-term revenue growth will be dramatic. Topeka Capital's Victor Anthony issued a buy call, with a $40 target.

Additionally, reports said James Gorman, CEO of Morgan Stanley (NYSE: MS), lead underwriter of the IPO, was scheduled to appear on CNBC Thursday to defend the IPO from claims that Morgan Stanley had mismanaged its May 18 public debut. Facebook was priced at $38 in the initial public offering.

Shares of Morgan Stanley were off 11 cents at $12.98.