Following several key updates to his thesis, RBC Capital analyst Mark Mahaney is out pounding the table on Facebook Inc (NASDAQ:FB) Tuesday, reiterating an Outperform rating and price target of $165.

The analyst believes that several key factors such as the addition of new advertising units, new video offerings, as well as continued strength in messaging platforms continue to make Facebook a solid investment.

Mahaney confidently believes that the markets do not appreciate the full potential and impact of Facebook’s product innovation on its user growth, long-term P&L potential, and monetization momentum.

The analyst believes that new advertising units should drive an upward push in user engagement. Mahaney has been tracking new key ad product innovations and improvements at Facebook. The list of innovations and enhancements is quite long, ranging from Carousel ads to ads for brick-and-mortar stores. The analyst claims that this diverse conglomerate of new features and initiatives “provide more options and better targeting for existing advertisers” and also believes that they will reduce barriers to entry for new advertisers seeking to utilize Facebook as an advertising platform.

Mahahey notes that new video offerings such as Live Video and 360 Video should drive user engagement upward from current viewing averages of 8 billion videos per day.  He also believes that feature and monetization improvements to Facebook’s messaging platforms, WhatsApp, and Messenger should drive Material P&L upside.

Mark Mahaney is ranked in the top 1% of analysts on TipRanks with a 61% success rate on his recommendations and an average annual return of 18.5% per rating.Mark Mahaney Stats

According to TipRanks’ statistics, 95% of analysts are bullish on FB, while the other 5% remain sidelined. The average price target for FB is $145.39, marking a 27% upside from current levels.