On Nov 01, major Wall Street analysts update their ratings for $Meta Platforms (META.US)$, with price targets ranging from $600 to $719.
Morgan Stanley analyst Brian Nowak maintains with a buy rating, and maintains the target price at $600.
J.P. Morgan analyst Doug Anmuth maintains with a buy rating, and adjusts the target price from $640 to $660.
BofA Securities analyst Justin Post maintains with a buy rating, and adjusts the target price from $630 to $660.
Citi analyst Ronald Josey maintains with a buy rating, and adjusts the target price from $645 to $705.
Barclays analyst Ross Sandler maintains with a buy rating, and adjusts the target price from $550 to $630.
Furthermore, according to the comprehensive report, the opinions of $Meta Platforms (META.US)$'s main analysts recently are as follows:
Meta Platforms continues to project a substantial rise in capital expenditures for 2025. Results also showcased several counterbalances that demonstrate the anticipated returns on these investments, such as an increase in revenue dollar growth in 2024, estimated at approximately $28 billion. There is also a possibility for advertising revenue growth in 2026 and subsequent years, owing to the opportunity to generate additional revenue through new products enabled by generative AI.
Following the Q3 earnings release, there was a slight downturn in share value, which can be ascribed to a robust Q4 revenue forecast being counterbalanced by projections of substantial capital expenditure and infrastructure-related costs for 2025. Despite a shift in focus from immediate earnings to long-term potential, it's recognized that the company has reaped considerable benefits from AI within its core advertising segment and possesses an impressive product roadmap with initiatives such as Meta AI and Llama. The strong fundamental revenue growth and consistent operational performance provide the company with the latitude to make significant investments in AI technology. Revenue projections for 2025 and 2026 have been modestly revised upwards based on the latest earnings outcomes.
Following Meta Platforms' Q3 revenue and EPS surpassing expectations, along with a Q4 outlook that aligns with existing market projections, revenue estimates for 2025 have been increased by 3% and EPS by 6%. This adjustment accounts for an anticipated rise in ad monetization, which is slightly tempered by an expected increase in R&D and capital expenditures.
Meta Platforms appears to be regaining its strong market position, as demonstrated by growth surpassing that of the digital advertising industry, enhancements in the business driven by artificial intelligence, and the CEO's assertive strategic planning, which includes significant investments. Long-term technology investors may view these developments positively, yet the recent peak in the company's multiples may also present concerns.
Following the Q3 report, there's an observation of a 20% year-over-year increase in advertising revenue when adjusted for currency fluctuations, along with growth in both ad impressions and pricing. This suggests Meta Platforms is continuing to capture a larger share of overall ad budgets. The enhanced engagement observed on Instagram and Facebook, propelled by Meta's artificial intelligence recommendation engine, underscores the early-stage yet promising returns on its AI investments. Investors are encouraged to consider any post-earnings decline in the share price as an opportunity.
Here are the latest investment ratings and price targets for $Meta Platforms (META.US)$ from 28 analysts:
Note:
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