Piper Jaffray analyst Michael Olson raised his price target for Facebook (FB) to $250 from $210 after taking over coverage of the shares.

The social networking giant closed yesterday down $1.27 to $208.09. Facebook continues to co-dominate the digital advertising world, excluding China, along with Alphabet (GOOG, GOOGL), as advertisers shift budgets from legacy offline channels into high return-on-investment targetable online channels, Olson tells investors in a research note. The analyst sees a "strong long-term revenue growth trajectory" for Facebook as advertising cost per thousand impressions increase in-line with a growing share of total advertising budgets.

He notes, however, that the company's new focus on investments in Watch content and safety and security may reduce margin expansion potential in the near term. Olson keeps Piper's Overweight rating on shares of Facebook.