Facebook (FB) - Get Report has been under increased scrutiny due to privacy concerns, but analysts at Guggenheim said shareholders are becoming accustomed to data leaks and are no longer selling every time the company has a privacy hiccup.
The firm raised its rating to buy from neutral while also increasing its price target on Facebook to $200 from $175 a share.
"Investors will continue to gain comfort with the incremental financial risk created by content and privacy concerns," analyst Michael Morris wrote. "At the same time, we believe usage trends have remained solid (domestic blue app maturity offset by Instagram and global growth) and see the potential for commerce and messaging monetization opportunities as attractively priced within shares."
Investors should hope the sentiment around privacy is as Guggenheim describes because on Wednesday the company admitted that it removed public databases containing its user data on Amazon's cloud servers after a cybersecurity firm discovered millions of exposed records.
The firm, UpGuard, said that Mexico City-based news website Cultura Colectiva used Amazon servers to openly store 540 million records on Facebook users, which included identification numbers, comments, reactions and account names.
Facebook shares were rising 1.6% to $176.38 on Thursday.
Facebook is a key holding in Jim Cramer's Action Alerts PLUS charitable trust.
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