Investing.com -- Truist analysts raised their price target for Meta Platforms (NASDAQ:META) to $650 from $570 per share on Thursday, citing expectations of sustained advertising demand in the upcoming third quarter of 2024.
The analysts believe Meta will report results at the higher end of its revenue growth guidance, projected between 13% and 20%, driven by strong social advertising demand and higher cost-per-thousand impressions (CPMs).
"We remain constructive on META into 3Q24 earnings as we expect results at the higher-end of guidance of 13%-20% for revenue growth and in line with consensus, fueled by sustained social ad demand and higher CPMs," said Truist.
The firm's analysts anticipate that the company's substantial investments in artificial intelligence will continue to enhance user and advertiser experiences, resulting in improved ranking and recommendation outcomes.
Looking ahead to the fourth quarter, Truist expects it to reflect the challenging year-over-year comparisons. They expect a revenue guide of $44 billion to $46.5 billion, reflecting a year-over-year increase of 10% to 16%, albeit with a quarterly deceleration in growth.
"We're at +12% vs cons. of +15%," the analysts stated. For fiscal year 2024, Truist maintains its revenue estimate at $160 billion, representing a 19% year-over-year increase, with adjusted EBITDA remaining at $95.5 billion, or a 60% margin.
Additionally, the firm introduced its 2025 quarterly estimates, projecting revenue growth to accelerate throughout the year, reaching approximately 20% by year-end.
They stated, "We expect top-line growth to accelerate throughout 2025 from low double digits in 1Q25 to exiting the year at ~20% y/y."
With continued market share gains in digital advertising and ongoing enhancements across Meta's Family of Apps, Truist's outlook for the company remains optimistic.