UPDATE: Citigroup Upgrades Facebook to Buy on Strong Q3 Results

Citigroup raised its rating on Facebook FB from Neutral to Buy but reduced its price target from $35 to $30. Citigroup commented, "What investors have for the first time since the FB IPO is fundamentals acceleration WITH a reasonable valuation (30 P/E for 30% EPS growth). Further, two of the biggest FB risks (Zynga dependency and Mobile monetization) appear to have been down-sized. And we've still seen zero contribution from newer initiatives, eg gifts, FBX, etc. Yes, lockups loom, but we believe long-term investors can use weakness around said lockups as a way to leg into a fundamentals positive/valuation reasonable long." Facebook closed at $19.50 on Tuesday.