The firm said it initiated coverage on the social network company as it believes Facebook can be a core holding for growth investors, and that its earnings can reach $4.55 per share in 2018.
MKM said that keys to the "investment thesis" include the company's "rapid growth, superior business model, unique market position, well positioned for video ad dollars migrating online, and Instagram and WhatsApp offer new growth vehicles as well as strategic and defensive benefits."
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The firm has forecast that Facebook will grow to $41 billion in revenue by 2018.
Shares of Facebook are up by 0.68% to $75.75 in pre-market trading today.
Separately, TheStreet Ratings team rates FACEBOOK INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate FACEBOOK INC (FB) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation."