NEW YORK (AP) — A UBS analyst has upgraded shares of Facebook Inc. to "Buy" from "Neutral" and said the company will likely make more money in the second half of the year as it ramps up advertising efforts.
The analyst, Eric Sheridan, expects Facebook to start selling video ads in the second half of the year. Facebook has not disclosed plans on this, though the company added a video feature to its popular photo-sharing app Instagram on Thursday.
Speaking of Instagram, the analyst also expects ads to come to the currently ad-free service in the second half of this year.
"In both cases, Facebook must be careful not to overly disrupt the user experience," Sheridan wrote. He also raised his target price to $30 from $28 and boosted his revenue estimate citing mobile ad revenue growth.
Shares of Menlo Park, Calif.-based Facebook climbed 48 cents, or 2 percent, to $24.38 in midday trading.