Truist Securities has increased its price target on Meta Platforms Inc. (NASDAQ: NASDAQ:META) to $650 from the previous $570 while maintaining a Buy rating on the stock.
The adjustment reflects positive expectations for the company's upcoming third-quarter earnings for the year 2024. Truist anticipates that Meta's financial results will align with the high end of its revenue growth guidance, which ranges between 13% and 20%.
The firm's confidence in Meta is bolstered by the consistent demand for social media advertising and rising cost per thousand impressions (CPMs).
Meta's investments in artificial intelligence (AI) are cited as key factors that enhance content ranking and recommendation systems for both users and advertisers. These technological advancements are expected to contribute significantly to the company's performance.
Looking ahead to the fourth quarter of 2024, Truist forecasts that Meta's revenue guidance will likely be set between $44 billion and $46.5 billion, translating to a year-over-year increase of 10% to 16%.
This projection suggests a quarter-over-quarter slowdown in growth, with Truist's estimate at 12%, compared to a consensus of 15%. The firm also noted that Meta's fiscal year 2025 operating expenses (Opex) and capital expenditures (Capex) guidance will not be available until early next year.
In summary, Truist Securities has set a new fiscal year 2025 price target for Meta at $650, up from the prior fiscal year 2024 target of $570.
In other recent news, Meta Platforms has experienced significant developments. KeyBanc has raised Meta's stock price target to $655, maintaining an Overweight rating based on expected revenue growth. This positive outlook is influenced by advancements in Facebook Reality Labs and artificial intelligence (AI). BMO Capital Markets also increased its target for Meta to $525, citing potential increases in creator payouts and capital expenditures.
Wells Fargo raised their price target for Meta, anticipating above-consensus earnings for 2025, expecting the company's revenue forecasts for the third quarter to be close to the higher end of the company's guidance. Meanwhile, the Court of Justice of the European Union ruled against Meta in a privacy case brought by Austrian activist Max Schrems, stating that Meta cannot use personal data for targeted advertising without time restrictions or differentiation between types of data.
In a collaborative effort with Australian banks, Meta removed around 8,000 deceptive advertisements from its platforms, responding to increased scam reports in Australia.
Pivotal Research gave Meta a Buy rating, highlighting the company's expansive user base and successful product development track record. Monness, Crespi, Hardt also raised Meta's 12-month price target, maintaining a Buy rating due to the company's AI and metaverse potential.
InvestingPro Insights
Meta Platforms Inc.'s strong market position and financial performance align with Truist Securities' optimistic outlook. According to InvestingPro data, Meta boasts a market capitalization of $1.49 trillion, reflecting its dominant status in the tech industry. The company's impressive revenue growth of 24.28% over the last twelve months supports Truist's expectations for continued expansion.
InvestingPro Tips highlight Meta's financial strength and growth potential. The company "holds more cash than debt on its balance sheet," indicating a solid financial foundation to support its AI investments and other strategic initiatives. Additionally, Meta's "impressive gross profit margins" of 81.49% underscore its operational efficiency, which could contribute to meeting or exceeding the high end of its revenue growth guidance.
These insights are just a sample of the valuable information available on InvestingPro. Subscribers can access 13 additional tips for Meta Platforms, providing a more comprehensive analysis to inform investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.