Facebook to rally more than 20% this year on strong ad demand, low valuation, Raymond James says

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Investors should buy Facebook shares because the company will top earnings expectations this year due to solid advertising spending, according to Raymond James, which raised its rating on the social media giant to strong buy from outperform.

"We upgrade shares of Facebook. ... 4Q checks are positive and show continued momentum," analyst Aaron Kessler wrote in a note to clients Friday. "We believe FB can continue to report upside to consensus estimates in 2017."