UPDATE: Topeka Capital Markets Upgrades Facebook to Neutral; Ad Load Not Disruptive

Topeka Capital Markets raised its rating on Facebook

from Sell to Neutral. Topeka Capital Markets noted, "Whereas our SELL was driven by fear about the Facebook user experience from a cluttering of ads and multiple negative earnings reductions, Facebook has taken ad loads to all new levels in Q4, with no discernible impact on users/user experience. The increased ad load is driving substantially higher revenues and adjusted EBITDA in Q4 2012 and 2013. Still, we are not excited by Facebook's valuation, which stands about 15x adjusted 2014 EV/EBITDA our revised estimates. We also continue to have longer-term fears about what the company is doing to the user experience." Facebook closed at $24.00 on Friday.