Facebook and Alphabet upgraded by Stifel on advertising optimism


Stifel is betting on Facebook and Alphabet as businesses increasingly spend more on advertising both in the U.S. and abroad.

The firm upgraded shares of Google's parent company Alphabet and social media giant Facebook to buy from hold. Stifel hiked its price target for Alphabet to $1,525 from $1,325, a 14% upside to the stock's closing price on Wednesday. Stifel raised Facebook's price target to $240 from $215, a 20% upside from Wednesday's closing price.

U.S. advertising spending continues to outpace GDP growth and since the last recession, growth in global advertising spend has remained steady around 5% year-over-year, the firm noted.

More In Pro News and Analysis

CNBC ProGameStop's surge could be a big win for Michael Burry of 'The Big Short'
CNBC ProMike Santoli's market notes: Small investors hype shorted stocks, pricey options a risk to novices, S&P 500 trades in a range
CNBC ProHere are the extremely valued stocks Goldman Sachs is worried about