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Pro Analysis

Facebook to rally 20% on ad spend: Morgan Stanley

Facebook logo with workers silhouette
Chris Ratcliffe | Bloomberg | Getty Images

Investors should buy Facebook shares as the social media company will beat earnings estimates in 2017 due to strong advertising trends, according to Morgan Stanley, which reiterated its overweight rating.

"We believe advertiser demand for FB remains strong and that ad unit pricing – determined in FB's advertiser auction – has room to head higher," analyst Brian Nowak wrote in a note to clients Wednesday.