Wall Street investment bank Morgan Stanley (MS) has named Meta Platforms’ (META) stock a “top pick” heading into the tech company’s earnings report on April 29.
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Forget margin or options. Here's how the pros trade AMZNBrian Nowak, a top four-star rated analyst, favors Meta Platforms heading into earnings over other big technology companies such as Amazon (AMZN) and Google parent company Alphabet (GOOGL). The analyst placed a Buy rating and a $775 target price on the shares, which is 15% higher than where the stock currently trades.
In a note to clients, Nowak writes that Meta trades at a discount to its large-cap peers when measured by its future earnings — around 18 times its 2027 forecast. His calculation assumes a 13% compound annual earnings growth rate (CAGR) for Meta through 2027. That compares with 23 times for both Amazon and Alphabet. He further sees Meta’s growth benefitting from the use of artificial intelligence (AI).
Meta’s AI Push
Last week, Meta launched its newest AI model, called Muse Spark. The capabilities of the new Meta AI model rank just below the latest AI models from rivals Google, OpenAI, and Anthropic, giving investors hope for the company’s future products.
“We believe Meta intends to release the new Meta AI to its family of apps in the weeks ahead and will be monitoring commercial behavior as a signal of further potential long-term revenue,” writes Nowak in his assessment of Meta’s future plans for AI.
Is META Stock a Buy?
The stock of Meta Platforms has a consensus Strong Buy rating among 45 Wall Street analysts. That rating is based on 39 Buy and six Hold recommendations issued in the last three months. The average META price target of $856.08 implies 35% upside from current levels.
