Topeka Capital Analyst Bullish on Facebook; Says Instagram is Worth $2.70 per Share

In a report released this morning, Topeka Capital analyst Victor Anthony weighed in on Facebook's

star acquisition, Instagram's, performance, and the report that it had reached 150 million users. He noted that his firm values Instagram at $2.30 per share on August 16, and that the new user metric bumped its valuation up to $2.70. The Topeka model projects that Instagram will reach 200 million users by March 2014, making the announcement that it may begin selling ads next year an enticing prospect. Anthony maintained his Buy rating on Facebook while giving it a $47 price target. Following the report, shares spiked at the open, yet soon gave up some ground, currently trading up 0.72 percent to $44.25.