UPDATE: Topeka Capital Markets Reiterates Buy Rating, Raises PT on Facebook on Continued Positive Trends

In a report published Friday, Topeka Capital Markets analyst Victor Anthony reiterated a Buy rating on

, and raised the price target from $40.00 to $47.00. In the report, Topeka Capital Markets noted, “We are shifting our Facebook valuation time frame to year-end 2014 from year-end 2013, with the change lifting our price target to $47 from $40. Our valuation on the stock does not factor in the potential for ads on Instagram, and the potential for auto-play video ads on Facebook, which combined is worth $3-$5 of incremental per share value. Longer-term, Graph Search and e-Commerce hold meaningful promise, in our view. Our checks on the advertising front continue to show positive trends. We understand from our checks that while the ad loads have not changed from 2Q, both the number of clicks in the newsfeed and the price per click are increasing, suggesting to us that sequential ad growth in 3Q could be much stronger than we anticipate (2.5% QoQ). Facebook remains our top pick over the next year.” Facebook closed on Thursday at $36.56.