UPDATE: Stifel Nicolaus Upgrades Facebook to Buy on Mobile Revenue Growth

Stifel Nicolaus raised its rating on Facebook

from Hold to Buy and established a $26 price target. Stifel Nicolaus commented, "Facebook reported modest upside to our estimates and consensus, with an impressive 14% of total revenues from mobile. The contribution from mobile more than offset a $39mn q/q decline in desktop ad revenues. ... Importantly, total revenue growth accelerated and margins increased. We believe the growth and margin ramp will extend into 2013. Estimates increase slightly. We would use the weakness surrounding the lockup expirations to add to positions." Facebook closed at $19.50 on Tuesday.