UPDATE: Citigroup Upgrades Facebook to Buy, Raises PT Following Conversations with Advertisers and Agencies

In a report published Tuesday, Citigroup analyst Mark May upgraded the rating on Facebook FB from Neutral to Buy, and raised the price target from $32.00 to $55.00. In the report, Citigroup noted, “When we initiated we were concerned that the rapid shift in usage from desktop to mobile would create short/mid-term monetization challenges and risk to estimates as desktop represented at the time 70% of revenue but desktop usage was declining. However, we are upgrading Facebook to Buy from Neutral as following several conversations with advertisers and agencies we believe the factors driving the sudden inflection and growth in 2Q13 are sustainable and that there are a number of factors that should contribute to further growth and gains, and potential upside. We are raising our estimates and price target accordingly.” Facebook closed on Monday at $46.83.