Facebook Inc (NASDAQ:FB) shares rallied Monday after analysts issued upbeat notes, reports MarketWatch.

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Benjamin Pimentel of MarketWatch feels Facebook Inc (NASDAQ:FB)’s share price jumped after analysts were enthused by the social network’s ad business, particularly its mobile ad business.

Topeka Capital analyst Victor Anthony is enthused about a Facebook Inc (NASDAQ:FB) presentation made at an e-commerce conference last week. The presentation provided a compelling case for the social network ad platform’s capability to micromanage its 1.1 billion users.

A presentation by Alex Zhardanovsky, co-founder of Petflow.com, highlighted how within two months he was able to enhance his fan base from 10,000 to 200,000 using Facebook Inc (NASDAQ:FB)’s targeting features. This resulted in the pet food store gaining more conversions and sales.

Concerns Eased After Ad Growth

Facebook Inc (NASDAQ:FB)’s stock gained 4.5 percent to close at $24.33, wiping out last week’s 4.3 percent loss. The reasons for loss were ascribed to slower growth in the user base and the effectiveness of the social network’s ads.

The social network giant had been subjected to criticism that advertising on its site did not translate to sales. However, these concerns have eased after the company’s ad business posted more growth.

Analysts have also been enthused at Facebook Inc (NASDAQ:FB) deriving about a third of its ad revenues through mobile ad business.  Analysts expect the enhanced mobile usage will increase daily interaction rates.

Analysts at J.P. Morgan have reiterated an overweight rating for Facebook Inc (NASDAQ:FB). Dough Anmuth said Facebook Inc (NASDAQ:FB) users remain engaged. Besides competing services are having only a modest impact on time spent on Facebook and that increasing mobile usage is keeping overall Facebook Inc (NASDAQ:FB) engagement fairly steady.

Transition From Social Media To Utility

Jordan Rohan, analyst at Stifel has upgraded Facebook Inc (NASDAQ:FB) stock to buy from hold as the stock price has already built in the doubts on the company’s poor ad efficiency and declining engagement.

Jordan Rohan feels the promise on Instagram and coming back-to-school season would act as potential catalysts for Facebook Inc (NASDAQ:FB).

More importantly, Stifel analyst feels Facebook Inc (NASDAQ:FB) is making the transition from social media to utility, indicating better staying power longer term.

Jordan Rohan, however, believes investors are ignoring some factors that should move the stock higher. These include new ad products and formats that the company is developing, as well as its inclusion in the S&P 500 index in the future.

He set a $29 price target on the shares.