On Thursday, Piper Sandler updated its outlook on Meta Platforms Inc. (NASDAQ: NASDAQ:META), raising the stock's price target from $545 to $575. The firm maintained an Overweight rating on the shares, signaling confidence in the company's performance and future prospects.
The adjustment comes in the wake of Meta's second-quarter revenue surpassing Wall Street's expectations by 3%, coupled with a high single-digit percentage improvement in EBITDA.
The company's third-quarter revenue guidance is particularly noteworthy, indicating a potential 22% year-over-year growth at the higher end of the range, even when factoring out foreign exchange impacts. This suggests a robust growth trajectory against a backdrop of more challenging year-over-year comparisons.
Meta's market demand is reported to be strong across various business verticals, and the company is experiencing enhancements in both its advertising tools and user engagement. Despite a continued increase in capital expenditures (CAPEX), the outcomes indicate that Meta is achieving a satisfactory return on investment at present.
In light of these developments, Piper Sandler has revised its estimates for Meta Platforms, leading to an elevated price target of $575. The firm's reiteration of its Overweight rating reflects its positive stance on the company's stock amidst these financial improvements.
In other recent news, Meta Platforms Inc. has been the focus of several positive financial outlook adjustments from various analyst firms.
Truist Securities raised its price target to $570, maintaining a Buy rating, based on the company's strong second-quarter performance and promising developments in artificial intelligence (AI). Oppenheimer increased its price target for Meta to $615, citing the company's strong future outlook, while Deutsche Bank raised its price target from $525 to $585, emphasizing expected growth driven by AI investments.
Goldman Sachs also increased its price target for Meta to $555, maintaining a Buy rating due to the company's extensive audience reach and adaptability to changing user behaviors. JPMorgan reaffirmed its confidence in Meta, raising the price target for the tech giant's shares to $610, driven by Meta's strong performance and strategic investments in AI.
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