Mizuho Securities analyst Lloyd Walmsley has maintained their bullish stance on META stock, giving a Buy rating today.
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Lloyd Walmsley has given his Buy rating due to a combination of factors that suggest a promising outlook for Meta Platforms. The company is planning significant reductions in its Metaverse spending, which could potentially add approximately $2 per share to the projected earnings per share (EPS) for 2026. This strategic move is expected to alleviate investor concerns about the substantial losses incurred by Reality Labs, thereby boosting confidence in Meta’s financial management and capital allocation strategies.
Additionally, the potential for reallocating funds from the Metaverse to invest in Generative AI initiatives is seen as a positive development. Despite the current negative sentiment among investors, particularly in the US, the valuation of Meta shares remains attractive. They are trading at a multiple that is below the historical average relative to the S&P 500, suggesting room for positive estimate revisions and multiple expansion. Overall, these factors contribute to a favorable long-term growth outlook for Meta, justifying the Buy rating.
In another report released today, Arete Research also upgraded the stock to a Buy with a $718.00 price target.
Based on the recent corporate insider activity of 286 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of META in relation to earlier this year.