Meta Platforms (META – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst yesterday. Analyst Brian Nowak from Morgan Stanley maintained a Buy rating on the stock and has a $650.00 price target.
Confident Investing Starts Here:
- Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
Brian Nowak has given his Buy rating due to a combination of factors, primarily focusing on Meta Platforms’ strategic initiatives to monetize WhatsApp. The introduction of ads on WhatsApp’s Updates tab is a significant move, as it leverages the platform’s vast user base of approximately 1.5 billion daily users. This initiative is expected to generate substantial revenue, potentially reaching $3-5 billion annually, with a bullish scenario exceeding $6 billion.
Nowak highlights that while the majority of WhatsApp users are outside the US, where ad monetization is typically lower, the scale of WhatsApp combined with Meta’s advanced data and advertising tools presents a strong growth opportunity. The planned monetization features within Channels, such as Promoted Channels and Channel Subscriptions, further enhance this potential. Although achieving the higher revenue targets may take several years, Nowak sees these developments as a robust framework for durable, multi-year revenue and free cash flow growth.
In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a $790.00 price target.
META’s price has also changed moderately for the past six months – from $619.440 to $697.230, which is a 12.56% increase.
Looking for a trading platform? Check out TipRanks' Best Online Brokers guide, and find the ideal broker for your trades.
Report an Issue