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On Thursday, Jefferies analyst Brent Thill increased the price target on Meta Platforms Inc. (NASDAQ: NASDAQ:META) shares, moving it up to $810 from the previous $715, while reiterating a Buy rating on the stock. The new target comes as Meta’s stock trades near its 52-week high of $682.58, with the company now commanding a market capitalization of $1.71 trillion. According to InvestingPro analysis, Meta is currently trading above its calculated Fair Value, though the stock has delivered an impressive 70% return over the past year. Thill’s optimism follows Meta’s fourth-quarter earnings, which showcased revenue growth of 21% year-over-year, surpassing the higher end of the company’s guidance and marking an acceleration from the 20% growth observed in the third quarter. InvestingPro data reveals Meta’s robust financial health, with an impressive gross profit margin of 81.5% and a strong overall financial health score rated as "GREAT." These metrics are among 17 exclusive ProTips available for Meta on InvestingPro.
In his analysis, Thill highlighted that Meta’s revenue guidance for the first quarter indicates a growth range of 11-18% year-over-year, excluding foreign exchange impacts. This projection is set against a 27% revenue increase in the same quarter of the previous year, suggesting that Meta’s investments in artificial intelligence for its advertising business are expected to drive double-digit percentage growth at a substantial scale.
Furthermore, Thill noted that Meta’s fiscal year 2025 expense guidance, which ranges between $114 billion and $119 billion, was higher than Jefferies’ estimate of $111 billion. However, he believes that this figure is likely aligned with buy-side expectations, especially considering Meta’s recent announcement of a capital expenditure guide between $60 billion and $65 billion.
The analyst’s comments reflected confidence in Meta’s strategic investments and their potential to fuel growth, stating, "Q1 rev guidance of 11-18% y/y rev growth (ex-FX) against a 27% last Q1 suggests that META’s AI investments in the ad business will fuel DD% growth at massive scale. FY25 expense guidance of $114-119B was above our $111B, but likely in-line with buy-side expectations following the recently announced $60-65B capex guide. Buy, raise PT to $810."
Meta Platforms’ shares have been under scrutiny as the company navigates through various challenges and opportunities in the dynamic tech landscape, with particular attention on its advertising revenue and strategic investments. The company maintains a P/E ratio of 31.05, reflecting market confidence in its growth trajectory. For deeper insights into Meta’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which covers over 1,400 top US stocks with expert analysis and actionable intelligence.
In other recent news, Meta Platforms Inc. has been the subject of numerous analyst upgrades following strong earnings results. RBC Capital Markets raised its Meta stock target to $800, citing the firm’s confidence in Meta’s AI prospects. UBS also increased its Meta stock target to $786, maintaining a buy rating due to the company’s underappreciated growth prospects. Piper Sandler raised its Meta stock target to $775, maintaining an Overweight rating. Truist Securities raised its Meta stock price target to $770, citing the company’s strategic initiatives and advancements in artificial intelligence as key drivers.
Meta’s recent quarterly performance surpassed expectations, reporting better-than-expected results and a robust 23% year-on-year revenue growth. The company’s impressive gross profit margins of 81.5% were also noted by analysts. Analysts from RBC Capital, UBS, and Piper Sandler raised their earnings estimates for Meta, reflecting their confidence in the company’s strong financial performance.
These recent developments reflect the overall positive outlook for Meta Platforms Inc. The company remains a dominant force in the tech sector with a market capitalization of $1.71 trillion. Its strategic focus on AI and XR technologies suggests a forward-looking approach to product development and market positioning. Despite facing challenges such as foreign exchange headwinds and increased operational expenditures, analysts expressed confidence in Meta’s ability to navigate these issues and continue its growth trajectory.
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