Meta Platforms stock price target raised to $845 from $655 at Stifel

Investing.com - Stifel has raised its price target on Meta Platforms Inc. (NASDAQ:META) to $845 from $655 while maintaining a Buy rating on the stock. The company, currently trading near its 52-week high of $747.90, has demonstrated impressive performance with revenue reaching $170.36 billion and maintaining a robust gross profit margin of 81.77%.

The firm’s decision comes ahead of Meta’s upcoming earnings report on July 30, with Stifel expecting upside to second-quarter numbers and a slightly better guidance from the company. InvestingPro analysis reveals additional insights about Meta’s valuation and growth prospects, with 14+ exclusive ProTips available for subscribers.

Stifel noted early feedback on WhatsApp monetization efforts has been positive, with the new revenue stream largely expected to be incremental to Meta budgets rather than cannibalizing Facebook and Instagram advertising.

Some market participants are anticipating a fourth-quarter ramp in WhatsApp monetization, according to the research note.

Stifel identified capital expenditure as a potential wildcard for Meta, particularly in light of the company’s intra-quarter commentary about artificial intelligence hiring initiatives.

In other recent news, Meta Platforms has seen its stock price targets raised by both Scotiabank (TSX:BNS) and Morgan Stanley (NYSE:MS). Scotiabank increased its target to $675, maintaining a Sector Perform rating, while Morgan Stanley raised its target to $750, keeping an Overweight rating. These adjustments reflect expectations of increased monetization through WhatsApp and improvements in Meta’s machine learning capabilities. Meanwhile, Meta has decided not to sign the European Commission’s Code of Practice for AI, citing concerns over regulatory overreach. Joel Kaplan, Meta’s Chief Global Affairs Officer, expressed that the framework introduces legal uncertainties for model developers. Additionally, Citizens JMP has reiterated its Market Outperform rating for Meta, with a price target of $750, citing AI’s benefits to Meta’s advertising business. In separate developments, Meta, along with other tech giants, has been questioned by U.S. lawmakers regarding the security of submarine communication cables involving Chinese and Russian entities. These recent developments highlight key areas of focus and concern for Meta Platforms.

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