DBS analyst Sachin Mittal maintains $Meta Platforms (META.US)$ with a buy rating, and maintains the target price at $655.
According to TipRanks data, the analyst has a success rate of 72.1% and a total average return of 20.2% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Meta Platforms (META.US)$'s main analysts recently are as follows:
Meta Platforms has been signaling a notable rise in capital expenditures for 2025, while also showcasing various factors that demonstrate the expected benefits from these investments. This includes an anticipated increase in revenue growth by approximately $28 billion in 2024. Additionally, there is a possibility for an upward trajectory in advertising revenue for the year 2026 and beyond, driven by the potential generation of additional revenue from new products leveraging GenAI technology.
Following the Q3 earnings announcement, expectations of a robust Q4 revenue forecast were balanced by projected substantial increases in capex and infrastructure-related outlays for 2025. The analyst acknowledged a shift in focus from immediate earnings to longer-term potential and noted that the company has seen significant benefits from AI in its core advertising business. With a strong product pipeline, including Meta AI, Llama, and other initiatives, the company's consistent core revenue growth and solid execution history provide the latitude for sizeable investments in AI. Revenue projections for 2025 and 2026 have been moderately raised post-earnings report.
Following Meta Platforms' third-quarter revenue and EPS surpassing forecasts and a fourth-quarter outlook that aligns with market expectations, revenue predictions for 2025 have been increased by 3% and EPS estimates by 6%. This adjustment takes into account enhanced ad revenue, though it is somewhat tempered by anticipated increases in research and development as well as capital expenditures.
Note:
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Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
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