UPDATE: BMO Capital Markets Upgrades Facebook to Outperform on Ad Spending Reacceleration

BMO Capital Markets raised its rating on Facebook

from Underperform to Outperform and increased its price target from $15 to $32. BMO Capital Markets commented, "We believe Facebook is experiencing a reacceleration of ad spending from large brands that are returning for mobile “reach & frequency” and more video ads. We also believe direct response (DR) advertisers are now armed with a proper set of ad buying tools; while Facebook Exchange receives most of the attention, Custom Audiences is what we hear the best feedback about. Moreover, Facebook is more fully embracing native monetization like Sponsored Stories and Gifts, and conversations with agency contacts indicate Facebook has improved its outreach to Madison Avenue." Facebook closed at $25.91 on Friday.