Meta Platforms Inc (NASDAQ:META) remains a top pick at JPMorgan, analysts said in a client note on Thursday.
The firm currently has an Overweight rating and a $305 price target on the stock. It believes "Meta has the most meaningful company-specific drivers," including ATT recovery, Advantage+, AI, Reels, and Click-to-Message.
As a result, the firm believes the social media and tech giant "should see significant 2H leverage following significant headcount reductions."
"Meta remains our favorite name within online ads and a Best Idea overall," wrote the analysts. In their note previewing the online ads sector, the analysts said that it has been choppy the past several quarters with ongoing macro volatility, platform privacy changes, and heightened competition.
"However, based on recent checks we believe the broader market has stabilized through 2Q and advertiser sentiment has improved, albeit within a still-challenging macro backdrop," wrote the analysts.
Despite edging around 0.3% lower so far on Thursday, Meta shares have rallied this year, up over 157%.