Meta Platforms stock price target raised to $740 from $635 at Baird

Investing.com - Baird raised its price target on Meta Platforms Inc. (NASDAQ:META) to $740.00 from $635.00 on Wednesday, while maintaining an Outperform rating on the stock. Meta, currently trading at $719.22 and boasting a market capitalization of $1.81 trillion, has demonstrated robust financial health, earning a "GREAT" rating according to InvestingPro analysis.

The price target increase follows Meta’s "Conversations" event, which highlighted AI-powered products and tighter integration with the company’s Advantage+ advertising platform.

Baird noted that the launch of Commerce, Ads, and Agents across WhatsApp and Messenger platforms represents "an important step" to unlock substantial incremental messaging revenues for Meta.

The firm estimates that click-to-message (CTM) ads are tracking toward a $15-20 billion run rate, while WhatsApp ads could add approximately $10 billion over several years.

Baird projects additional subscriptions and fees could contribute another $10 billion, creating a total messaging monetization opportunity of approximately $40-50 billion by 2030, which would contribute about $100 per share in enterprise value.

In other recent news, Meta Platforms Inc. is facing potential regulatory challenges in Europe. The European Commission has warned that Meta could incur fines of up to 5% of its daily revenue if its revised advertising model does not comply with the Digital Markets Act. This follows a previous fine of EUR 200 million for its advertising practices. Despite these challenges, Cantor Fitzgerald has maintained an Overweight rating on Meta, suggesting confidence in the company’s ability to adapt with minimal disruption. Meanwhile, Meta has introduced direct messaging and new visual features to its Threads platform, enhancing user interaction and engagement. In other developments, Meta announced new features for businesses using WhatsApp, including centralized marketing campaigns and AI support, aiming to streamline marketing efforts across its platforms. Additionally, Chinese shopping site Temu has resumed advertising on Meta’s platforms, significantly increasing its number of active advertisements. These updates reflect Meta’s ongoing efforts to innovate and adapt in the face of regulatory and competitive pressures.

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