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Investing.com-- Mizuho (NYSE:MFG) analysts increased their price target on Meta Platforms Inc (NASDAQ:META) citing confidence in the company’s accelerating AI-driven revenue initiatives, regulatory support, and open-source efficiency potential.
Mizuho hiked PT to $750 from $675, while maintaining an "Outperform" rating.
The adjustment was driven by Meta’s "significant optionality" in generative AI products like MetaAI, WhatsApp monetization, and cost efficiencies. Despite in-line quarterly guidance, Mizuho highlighted management’s "optimistic tone" on product development and government collaboration, which could mitigate regulatory risks and spur innovation.
Meta’s revenue grew 21% year-on-year in the fourth quarter, outperforming consensus by 4 points, fueled by e-commerce strength.
While first-quarter guidance of 12% YoY growth—3 points below expectations—reflects foreign exchange headwinds, constant-currency growth is projected at 11-18%.
Mizuho expects full-year FY25 revenue growth to remain stable, noting ad metrics improved with impressions up 6% YoY and pricing rising 14% YoY, aided by AI-enhanced ranking systems and video content.
Monetization catalysts are building, analysts said. MetaAI, the personal assistant with 700 million monthly active users (MAUs), is projected to surpass 1 billion users in FY25, unlocking revenue potential.
Operating expenses rose 5% YoY in Q4, but FY25 operating expenditure guidance of 23% growth—including severance costs and server-life extensions—aligns with expectations.
Mizuho noted Meta’s commitment to open-source AI could lower inferencing costs, while FY25 capex is set to rise 62% YoY, reflecting sustained infrastructure investment.
Meta’s execution on AI, combined with regulatory tailwinds and operational discipline, reinforces our long-term bullish view, Mizuho analysts wrote.