UPDATE: Stifel Nicolaus Upgrades Facebook to Buy on Multiple Upside Catalysts

In a report published Monday, Stifel Nicolaus analyst Jordan Rohan upgraded the rating on Facebook (NASDAQ: FB) from Hold to Buy, and named a $29.00 price target.

In the report, Stifel Nicolaus noted, “We have increased our rating of Facebook from Hold to Buy. FB presents one of the most compelling investments in the Internet sector right now, as the fears of declining engagement and poor ad efficacy have already been discounted into shares. Further, upside catalysts are being ignored: 1) the inclusion of FB into the S&P500, 2) back-to-school seasonality, 3) monetization of Instagram (at some point), and 4) new products and advertising formats, including broader rollout of FBX and video ads. At 1.3x PE/G or 0.5x EV/EBITDA/G on 2014 estimates, we believe shares have bottomed. Our $29 target implies 25% potential upside from current levels and may prove conservative.”

Facebook closed on Friday at $23.29.