Meta Platforms Buy Rating Affirmed Amid Growth and Innovation Potential Despite Regulatory Challenges

Monness analyst Brian White has maintained their bullish stance on META stock, giving a Buy rating today.

Brian White has given his Buy rating due to a combination of factors indicating strong performance and potential for growth at Meta Platforms. He points to Meta’s impressive stock performance last year and its continued outperformance in his coverage year-to-date. White believes that Meta is in a solid position to capitalize on the ongoing digital advertising trend, push the envelope with artificial intelligence innovations, and benefit from a more efficient cost structure. However, he also acknowledges the challenges that lie ahead, including increased regulatory scrutiny that the company faces.

In his projection for the company’s growth, White expects Meta to at least meet, if not exceed, his revenue and EPS estimates for the first quarter of 2024. His forecast is based on year-over-year growth acceleration and a more modest quarter-over-quarter decline compared to historical averages. White’s optimism is further supported by expected growth in advertising revenue, emerging revenue streams from Reality Labs and Other segments, and the potential impact of legislative actions that could affect competitors like TikTok. Despite the regulatory headwinds, White maintains a positive outlook on Meta’s financial performance, leading to his recommendation to buy the stock.

In another report released today, Citi also reiterated a Buy rating on the stock with a $590.00 price target.

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Meta Platforms (META) Company Description:

Social networking company Facebook, Inc. develops applications that enable people to connect through mobile devices, personal computers, and other devices. The firm’s products include Facebook, Instagram, Messenger, WhatsApp, and Oculus. Its revenue comes primarily from advertising. The company was founded by Mark Zuckerberg, Dustin Moskovitz, Chris R. Hughes, Andrew McCollum, and Eduardo P. Saverin on February 4, 2004 and is headquartered in Menlo Park+D9, CA.