JPMorgan Chase & Co (NYSE:JPM) analyst Doug Anmuth is bullish on Facebook Inc (NASDAQ:FB) shares and he’s not letting the markets’ bullishness outpace his own. After the market beat his $45 price target in recent trading, Anmuth took another look at Facebook and decided it was worth much more.

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In a report published Thursday, JPMorgan Chase & Co (NYSE:JPM) raised its price target on Facebook Inc (NASDAQ:FB) to $53, and put an Overweight rating on the company’s stock. The report said that better than expected advertising traction was the reason for the increased price target.

Facebook traction

According to the analysis, advertising traction will increase for Facebook Inc (NASDAQ:FB) through the end of fiscal 2014. Marketers and advertisers are finally coming around to Facebook as an advertising platform. That means that Facebook Inc (NASDAQ:FB) will be able to charge more for a greater volume of ads, according to Anmuth.

This has been the general trend at Facebook Inc (NASDAQ:FB) for the last year, but the market took notice after the company released its earnings report for the quarter through June 30. That report should a large increase in revenue, and a greater revenue share from mobile advertising.

Facebook is likely to show a broader base of advertisers in the current quarter, with notable increases coming from the entertainment industry. Those ads should feature video, paving the way for Facebook’s own video launch next year.

Facebook bulls

Facebook Inc (NASDAQ:FB) has been gaining ground with investors for several months, and the company destroyed an important psychological barrier this week. In trading Wednesday, Facebook traded for an all-time high of $45.05, the first time it has surpassed the previous $45 high set on IPO day.

The markets is bullish on Facebook Inc (NASDAQ:FB), and JPMorgan Chase & Co (NYSE:JPM) is keeping up with the trend. The $53 price target is one of the highest out there from a major institution. Facebook has lost the bounds of its IPO price high, but those may not be the only chains cast off at Menlo Park.

The market completely misvalued Facebook Inc (NASDAQ:FB) on the first day it traded publicly. The stock had traction, it was growing and it was a sure thing. The same arguments are being used now, fifteen months later. Facebook Inc looks much healthier now than it did on IPO day, but that won’t quell lingering doubts in the minds of investors.