UPDATE: Barclays Initiates Coverage On Facebook

In a report released Thursday, Barclays analyst Paul Vogel initiated coverage on Facebook (NASDAQ: FB) and gave the company an Overweight rating with a price target of $78.00 per share.

Analysts at Barclay are bullish on the internet industry, adding eight internet large cap companies to its coverage. Barclays believes U.S. internet companies have potential for significant growth and favors innovations to come within the sector.

Vogel labels eight key themes that analysts at Barclays favor that are different than common focus points in the internet space:

1) Increase growth in Digital Native, generating more buying power in the digital space.
2) Identification & personalization - the importance of knowing who you are, where you are and what you like to do.
3) Innovation in search and email, problems occur but tool holds much potential.
4) The network effect pulling more and more users.
5) The New Conglomerates - meaning companies within the sector are developing moderate conglomerates.
6) The monetization of countries outside of the U.S.
7) Behavior of users and embedding habits with internet.
8) The importance of privacy and security improving.

Vogel adds that Facebook benefits from most of the list trends and the social network can see more growth to come in relation to Barclays themes. Barclays favors Facebook's valuation on a P/E and FCF basis.