Meta Platforms stock price target maintained at $880 by Piper Sandler

Investing.com - Piper Sandler has reiterated its Overweight rating and $880.00 price target on Meta Platforms Inc. (NASDAQ:META), maintaining the company as its top large-cap pick. The social media giant, now valued at $1.81 trillion, boasts impressive gross profit margins of 82% and maintains a strong financial health rating according to InvestingPro analysis.

The research firm noted that its checks on Meta remain strong, with particular focus on the company’s fourth-quarter revenue guidance. Piper Sandler anticipates guidance of approximately $59 billion on the high end, representing year-over-year growth of about 22%. This projection aligns with Meta’s current momentum, as shown by its 19.4% revenue growth over the last twelve months. Get deeper insights into Meta’s growth metrics and 12+ exclusive ProTips with InvestingPro.

Piper Sandler expressed interest in CEO Mark Zuckerberg’s commentary on new AI initiatives and advertising model investments. The firm expects capital expenditures to increase but cited Meta’s execution as the best in the internet sector. The company’s strong execution is reflected in its P/E ratio of 26.1, which analysts consider reasonable given its growth rate.

Separately, Piper Sandler addressed Reddit (NYSE:RDDT), noting buyer interest ahead of third-quarter results following speculation about a potential drop in ChatGPT traffic. The firm reported that Reddit management emphasized they don’t believe there was a change in how OpenAI is using Reddit data.

For Reddit, Piper Sandler sees a third-quarter revenue target of $585 million and expects approximately 12% quarter-over-quarter guidance, resulting in fourth-quarter revenues of around $660 million at the midpoint.

In other recent news, Meta Platforms Inc. received a Buy rating reiteration from Citi, which also maintained a price target of $915.00. Citi has opened a 90-Day Upside catalyst watch, suggesting potential positive developments for Meta in the near term. Meanwhile, Citizens has maintained its Market Outperform rating with a $900 price target, citing strong growth in Instagram usage, which saw an 18.5% year-over-year increase in global time spent. The firm also pointed to artificial intelligence as a key growth driver, enhancing advertiser returns and boosting platform spending. Additionally, Instagram is exploring the development of a dedicated TV app to expand its video reach, potentially entering the television viewing space. Instagram chief Adam Mosseri discussed this initiative at the Bloomberg Screentime conference, noting the importance of adapting to changing consumption behaviors. While the company is in the exploration phase, no official announcements have been made yet. These recent developments reflect ongoing efforts by Meta Platforms to enhance its offerings and maintain growth momentum.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.