Citigroup thinks photo sharing service Instagram is now worth $35 billion—nearly double its previous valuation and a price tag the bank characterized as "conservative."
Facebook bought Instagram in late 2012 for a final price tag of $715 million, meaning the service is now worth about 49 times what the social network paid for it.
In a research note Friday, Citi said the higher valuation was "due to faster audience growth as well as continued monetization gains by social media properties."
Citi raised its price target for Facebook to $91 from $86 on the basis of Instagram's higher valuation.
At $35 billion, Instagram would be worth about 50 percent more than Twitter, and would also be worth more than social networks like Yelp and LinkedIn.