© Reuters Piper Sandler ‘more confident’ on Meta Platforms (META) re-acceleration
Piper Sandler analysts lifted the firm’s price target on Overweight-rated Meta Platforms (NASDAQ:) to $310 from $270 in a research note on Wednesday.
The analysts told investors their firm is more confident in META share gains, impressions, and artificial intelligence (AI).
“We are now more confident in META’s re-acceleration and raise 2H23 revenue & out-year estimates,” they wrote. “Our Ad Metrics data suggests pricing is weaker, but spend is holding up. Our view: we think META is ramping Reels inventory faster than anticipated.”
The analysts added that they see META adopting “a three-pronged AI approach: (1) boosting time spent, (2) improve advertiser tools, and (3) creating an open ecosystem.”
“META is just now beginning to re-gain market share after ~2 years of declines. We think AI investments, new product growth (Reels), TikTok issues, and ad-tech investments set the stock up well for 2H23 & into ’24. We raise 2H23E revenue by ~$480MM and ’24E by ~$1.9BN,” concluded analysts.
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