MENLO PARK (CBS/AP) — Facebook’s stock was climbing after an upgrade from an analyst who believes Wall Street was underestimating the company’s potential to grow revenue.
Bernstein Research analyst Carlos Kirjner said Monday that Facebook Inc. was likely to beat Wall Street’s revenue expectations over the next 12 to 24 months. He expects Facebook to hit $6.98 billion in revenue in 2013, some 9 percent higher than the average analyst’s expectation. In 2011, the social network reported revenue of $3.71 billion.
Kirjner upgraded Facebook’s stock to “Outperform” from “Market Perform,” saying that mobile advertising will drive revenue growth.
Facebook’s stock was up $1.85, or 7.7 percent, at $25.84. It’s still down 32 percent from its initial public offering price of $38.
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