This JPMorgan Research Note Sent Facebook Sharply Higher

JPMorgan analysts reiterated that Facebook Inc FB remained their "top pick" and "favorite idea," while reiterating the Overweight rating and $100 price target. Shares of Facebook shot 3 percent higher to trade near $81 per share following the note.

The analysts based their thesis on the comScore data that "suggests continued strong engagement," particularly on mobile and even excluding Facebook properties of Instagram and WhatsApp. In April, Facebook's share of mobile time (smartphones only, excludes tablets) was 24 percent, while it was 19 percent if you include desktop. That rose 2 percent from the March data, which JPMorgan called "meaningfully higher" and "well above other social services combined."

In total, JPMorgan believes that Facebook is "still early in monetizing" its base, while also building other "strong franchises" that include Instagram, Messenger and WhatsApp. The analysts were also optimistic that Facebook's other product updates would continue to engage users. Specifically, they highlighted the video calling in Messenger, as well as Instant Articles and auto-play videos. Notably, the ad platform "is just beginning to shift toward more social ads," making them of higher value to advertisers.

Facebook, in JPMorgan's opinion, will become "an enduring, blue-chip company built for the long term." However, the analysts did point to several risks to their thesis. Those included the fact that advertiser ROI may remain difficult to measure, as well as privacy and security concerns and greater competition from Google Inc GOOG.

Facebook is now 4 percent higher year to date, following gains of 41 percent in 2014. The stock hit a high of $86.07 in March.