Raymond James analyst Aaron Kessler upgraded Facebook (FB) to Strong Buy from Outperform with a price target of $270, up from $230.

The shares closed Tuesday up $2.92 to $217.79.

The analyst expects Facebook to reported revenue and earnings upside in Q4 as his channel checks point to "solid growth." Facebook's guidance for mid-to-high single-digit deceleration versus was likely conservative, Kessler tells investors in a research note. In addition, the analyst's recent survey of 465 internet users points to Facebook retaining its social leadership position with Instagram as the biggest share gainer in time spent. Further, he believes moderating privacy concerns could drive multiple expansion for Facebook in 2020. Kessler finds the stock's valuation attractive at current levels.