CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We increase our 12-month target price to $430 from $390, on a P/E of 20.8x our 2025 EPS view, near META’s five-year historical forward average. We keep our 2024 EPS estimate at $17.52 and 2025’s at $20.69. Ahead of Dec-Q results set for 2/1, we project ad revenue grew 20%-21% in Q4 and see mid-teens growth for 2024. Greater traction from China vendors, easy comps in the 1H, as well as a very important 2024 election and the Summer Olympics, are all reasons that 2024 could be another good year for digital ad spend. Although we expect META’s growth trajectory to decelerate as we progress through 2024, we think its attractive valuation, coupled with healthy digital ad market and AI prospects, offer a compelling investment opportunity (despite strong 2023 returns). Operating expense growth will remain subdued as META focuses on AI initiatives (shifting capital from non-AI projects). We see increasing opportunities tied to Reels, Advantage+ shopping campaigns, Llama, business messaging, AI agents, and the metaverse.