Analyst Brian Nowak from Morgan Stanley maintained a Buy rating on Meta Platforms and keeping the price target at $850.00.
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Brian Nowak has given his Buy rating due to a combination of factors that highlight Meta Platforms’ potential for growth and resilience. One of the key reasons is the anticipated $600 billion investment in the US by 2028, which is already factored into the financial models. Nowak suggests that this investment is unlikely to negatively impact earnings per share or free cash flow, as it aligns with the company’s operational and capital expenditure plans, particularly in the US where many of Meta’s major offices and R&D efforts are located.
Additionally, Nowak emphasizes the importance of Meta’s ongoing advancements in GPU-enabled machine learning, which are expected to drive significant improvements in user engagement and revenue. The expansion of models and recommendation tools, along with enhancements in video and content discoverability, are seen as long-term growth drivers. These factors, combined with the potential financial benefits from initiatives like OBBBA, support the optimistic outlook for Meta’s stock, with a projected upside in both base and bull scenarios.
In another report released yesterday, Bank of America Securities also maintained a Buy rating on the stock with a $900.00 price target.