Baird analyst, Colin Sebastian, reiterated his Outperform rating on shares of Facebook (NASDAQ: FB) another strong quarter overshadowed by 2017 growth commentary.

FB's strong 3Q16 top- and bottom-line beat was driven by advertising on core Facebook and ramping monetization of Instagram. On the call, management reiterated that moderating ad loads will create a headwind to growth next year, even as investment spending continues. Shares may trade lower on this outlook, but out-year targets are still achievable, largely driven by ad prices, ad engagement and user growth.

The analyst suggests adding to positions on a pullback.

For an analyst ratings summary and ratings history on Facebook click here. For more ratings news on Facebook click here.

Shares of Facebook closed at $127.17 yesterday.