Citigroup has today raised its price target for Facebook shares to $91 from $86, citing its new valuation estimate for the company’s Instagram unit. As a result, the popular photo-sharing network is now worth $35 billion, up from its previous estimate of $19 billion, TechCrunch is reporting.
The global banking and investment firm notes that its new valuation of Instagram is due to the network’s faster audience growth and continued monetization gains by social media properties.
Citi believes the photo sharing service is now worth $35B, up from its previous estimate of $19B. The firm says Instagram is “quickly gaining monetization traction.” Citi keeps a Buy rating on shares of Facebook. The social media giant closed yesterday up $2.29 to $78.40.
Instagram recently announced that it had surpassed 300 million active users, which makes it even bigger than Twitter, and has also taken steps toward cleaning up spam accounts as well as adding new filters and features in an update earlier this week.