Citigroup has maintained a “hold” rating on Facebook's shares since it initiated coverage.
Mahaney said the company needs to show reacceleration in revenue growth. He added that a drop in its stock price to the mid-teens would be “really obvious as a discount to its growth rate” and could take out a lot of the stock’s risk.
“There have been one or two interesting outperformers since their IPO — but only one or two,” he said. Zillowand Yelp are two examples of these outperformers, Mahaney said.
“We like Zillow as a stock,” he said.
Mahaney said he also upgraded LinkedIn’s shares following its lockup expirations.
—By CNBC.com’s Katie Little; Follow Her on Twitter @katie_little
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