UPDATE: Hudson Square Research Initiates Facebook at Hold

Hudson Square Research has published a research report on Facebook

and has initiated coverage with a Hold rating. In the report, Hudson Square writes, "While we very much like the Facebook long term story, given 1) the recent slowdown in revenues, 2) the near and medium term risk that mobile monetization issues will persist, 3) our expectation for near term margin compression, and 4) a valuation of 73x 2012 earnings vs. 19x for its peers, we cannot recommend the stock at this juncture. We might be more constructive on a pullback and / or a reacceleration of growth." Facebook closed Friday at $38.23.