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Facebook Inc (NASDAQ:FB)’s recently unveiled Graph Search feature is uniquely positioned to provide users relevant and meaningful search results, according to analysts at Bank of America Merrill Lynch. BAML has increased its price target for Facebook Inc. (NASDAQ:FB) from $31 to $35 with a Buy rating, after Mark Zuckerberg unveiled the search feature during Facebook’s secret announcement in Menlo Park, California.

BAML analyst, Justin Post says Graph Search is an example of the social networking giant’s ongoing innovation to boost user engagement and generate more revenues. A few weeks ago, BAML released a report saying that Facebook Inc (NASDAQ:FB) has a huge potential to monetize mobile usage which has been under scrutiny for months.

Bank of America Merrill Lynch is not the only firm bullish on Facebook’s Graph Search. Wedbush analyst, Michael Pachter, also maintains a $35 price target with Outperform rating on the stock. The new Graph Search will appear at the top of the page when the user logs in. Using the tool, people can search for photos, places, people and interests, and results will be displayed below the bar.

The Graph Search is still in beta stage, as the company is analyzing how users will engage the tool, and how it can be improved. So, the rollout will take some time. Initially, the Graph Search will be available in only English, but other languages will be added later. A mobile version will also be made available.

Facebook Inc (NASDAQ:FB) already has a vast database of information about its over 1 billion users, the company tracks user activities real-time, allowing Facebook to collect latest user information without any hindrance. Analysts believe the information will be highly desirable to advertisers. Wedbush also believes Graph Search forms a platform to better monetize Facebook’s user activity going forward.

Facebook Inc (NASDAQ:FB) has also tied up with Microsoft Bing to make available the results beyond the domain of Graph Search. For example, Graph Search can’t display results for “weather in Menlo Park”, it only shows results related to users. These kinds of queries are easily accessible through Bing.

Facebook share prices were up 1 percent to $30.15 at 11:33 AM EST.