(CercleFinance.com) - Credit Suisse has raised its target price for the Facebook stock from 258 dollars to 305 dollars, ahead of the social network company's second-quarter results, which it will report after close on 29 July.

Facebook last reported that it had 140 million business profiles, of which only 8 million are paying advertisers, Credit Suisse said in a research note.

The broker said the current environment suggests that not only should there be a greater number of business profiles, but the conversion from free to paying advertisers (about 6% for Facebook) should also rise.

Credit Suisse hence maintains its 'outperform' rating on the stock, citing potential for better-than-expected ad revenue growth on product innovation (Facebook Shops, Search in Marketplaces, etc.).

The broker also said Street models are too conservative and underestimate the long-term monetization potential of other billion-user properties, such as Messenger and WhatsApp.

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