Shares of Meta Platforms (NASDAQ:META) have risen sharply this year (see the chart below), reflecting growing momentum in its products and platforms and benefits from cost-cutting measures. While its social media platforms are witnessing higher engagement, analysts see further growth opportunities from Threads, its recently launched app that will compete with Twitter.
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Analysts Upbeat About Threads
On July 6, Rosenblatt Securities analyst Barton Crockett increased his estimates for META and maintained a Buy recommendation on the stock. Crockett said, “Meta’s new Threads looks sharp to us, both in the direct opportunity, AND in the return of swagger to Meta’s social media wheelhouse.” The analyst increased the price target to $333.
Echoing similar sentiments, Tigress Financial analyst Ivan Feinseth said that the launch of Threads creates the opportunity to drive engagement on its platforms and “creates another potential growth catalyst.” On July 6, Feinseth reiterated a Buy on META stock and raised his 12-month price target to $380.
Is META Stock a Good Buy Now?
Meta is hitting all the right chords in 2023. During the Q1 conference call, Meta’s CEO, Mark Zuckerberg, said that the company is witnessing solid engagement growth across its family of apps. Zuckerberg highlighted that Reels are behind its growing app engagement. Now, Threads, with its Instagram integration, will be a key to Meta’s engagement strategy in the coming years.
Meta is poised to deliver solid growth in the future, led by higher user engagement, new product launches, and investments in AI (artificial intelligence). Moreover, the recovery in digital advertising could give its financials a significant boost.
While META’s top line is expected to improve, its cost-saving initiatives will likely cushion its earnings. Wall Street expects META to post earnings of $2.9 per share in the second quarter, reflecting an improvement on both a year-over-year and sequential basis.
Thanks to the META’s improving prospects, Wall Street analysts are bullish on the stock. META stock has received 36 Buys and four Hold recommendations, giving it a Strong Buy consensus rating. However, due to the recent rally, analysts’ 12-month average META stock price target of $304.21 implies just 4.71% upside potential from current levels.
